VTSAX or VTI to move funds from Chase You Invest to another institution

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sun25
Posts: 17
Joined: Wed Mar 21, 2018 11:31 am

VTSAX or VTI to move funds from Chase You Invest to another institution

Post by sun25 » Sun May 19, 2019 7:12 pm

Hello BHs,
Needed some advice: I plan to open a Chase you invest account for the 60K UR points. My idea is to open a taxable brokerage account, invest for the next 6 months at Chase (to get the UR points) and then have the option to transfer out to Vanguard/another institution (if I am not happy with Chase). It would still continue to be VTSAX or VTI holdings.
My question is should I invest in VTSAX or VTI? Are there any possible taxable events that would occur, if I decide to pull the money out of Chase? Does it matter if it is in a mutal fund or an ETF? The holdings would remain the same.
Thanks!

koldude
Posts: 21
Joined: Sun Mar 20, 2016 12:53 am

Re: VTSAX or VTI to move funds from Chase You Invest to another institution

Post by koldude » Sun May 19, 2019 7:27 pm

I imagine that there would be pretty steep fees associated with purchasing the Mutual Fund (VTSAX) compared to the ETF (VTI) at Chase. I’m not personally familiar with the fee structure of Chase You Invest, but generally, ETFs are the way to go if you intend to hold the investments away from the parent institution offering the fund (in this case, Vanguard).

Now, if you were just transferring the asset and didn’t intend to purchase additional shares, it may not make a difference whether you keep VTSAX or VTI. However, if you intend to do any additional investing during the 6 months you are with Chase, then VTI is the way to go.

Also, just FYI that Vanguard allows you to convert existing shares of VTSAX into the ETF equivalent for free, but that transaction is a one-way only transaction, meaning that you can’t take ETF shares and exchange them for the corresponding Mutual Fund shares. Just some food for thought.

Good luck.

YoungBogle
Posts: 99
Joined: Thu Nov 08, 2018 10:04 pm

Re: VTSAX or VTI to move funds from Chase You Invest to another institution

Post by YoungBogle » Sun May 19, 2019 7:30 pm

VTI would be better

Topic Author
sun25
Posts: 17
Joined: Wed Mar 21, 2018 11:31 am

Re: VTSAX or VTI to move funds from Chase You Invest to another institution

Post by sun25 » Mon May 20, 2019 6:07 am

Thanks,
I get a 100 free trades (promotion) and there are no additional fees according to Chase.
Given this - what would be better - VTSAX or VTI and why?
Thanks!

22twain
Posts: 1952
Joined: Thu May 10, 2012 5:42 pm

Re: VTSAX or VTI to move funds from Chase You Invest to another institution

Post by 22twain » Mon May 20, 2019 6:44 am

koldude wrote:
Sun May 19, 2019 7:27 pm
I imagine that there would be pretty steep fees associated with purchasing the Mutual Fund (VTSAX) compared to the ETF (VTI) at Chase.
That was my first thought, too. However, according to Chase's fee schedule (PDF), there are no commissions when you buy or sell mutual funds (e.g. VTSAX) online. There is normally a $2.95 commission for each stock or ETF trade, but you get 100 free trades during the first year.
My investing princiPLEs do not include absolutely preserving princiPAL.

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