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VLCAX inability to exchange with specific ID online

Posted: Tue Aug 13, 2019 3:26 pm
by Xrayman69
Was looking into exchanging some specific lots of VLCAX to VFIAX recently. However during the process would only allow FIFO basis as at this time this fund doesn’t not have ability to provide specific ID.

What would others do in order to TLH when the opportunity may arise again?

Thanks

Re: VLCAX inability to exchange with specific ID online

Posted: Tue Aug 13, 2019 3:30 pm
by livesoft
I own this fund and I have the cost basis set to Specific Identification. [It is probably just a failure of the Vanguard web site interface which does not let one specifically identify shares for their exchange operation.]

Added: It looks like the web interface might allow for selecting the shares to exchange, see my post below and the screen capture.


A workaround could be to have cash to buy the replacement fund shares. Maybe this cash is in your emergency fund? Then do 2 transactions: Sell VLCAX using specific identification (I know that works provided that you have the cost basis method set to specific identification) and buy the replacement shares. You can even buy the replacement shares first, then sell VLCAX.

Re: VLCAX inability to exchange with specific ID online

Posted: Tue Aug 13, 2019 4:20 pm
by megabad
livesoft wrote:
Tue Aug 13, 2019 3:30 pm
I own this fund and I have the cost basis set to Specific Identification. It is probably just a failure of the Vanguard web site interface which does not let one specifically identify shares for their exchange operation.

A workaround could be to have cash to buy the replacement fund shares. Maybe this cash is in your emergency fund? Then do 2 transactions: Sell VLCAX using specific identification (I know that works provided that you have the cost basis method set to specific identification) and buy the replacement shares. You can even buy the replacement shares first, then sell VLCAX.
... as at this time this fund [the web interface for exchanges] doesn’t not have ability to provide specific ID.
Is this just with Large Cap Index or are there others? I haven't looked at this recently.

Re: VLCAX inability to exchange with specific ID online

Posted: Tue Aug 13, 2019 4:41 pm
by livesoft
I don't know. I am going by what Xrayman69 posted.

I just tried to exchange shares of VLCAX in my account to see what is displayed. I see a hint that perhaps Xrayman69 is incorrect.

Here is a screen capture of a portion of what I see:
Image
Note the "Edit lots" that one can click on. Also note that I used "Sell in shares" and not "Dollars".

Unfortunately, my shares are from a single lot, so Specific ID, Average Cost, and FIFO are all identical, so for me to click on Edit lots" does not reveal multiple lots to select from because there are no multiple lots for me.

If you have shares in something else, maybe you can try to see what happens, but don't click the final Confirm?

Re: VLCAX inability to exchange with specific ID online

Posted: Tue Aug 13, 2019 8:25 pm
by grabiner
Are your shares non-covered? If so, Vanguard doesn't have lot information. When you sell, you should then send a secure message to Vanguard identifying which lots you want sold. (I have done this several times.)

Re: VLCAX inability to exchange with specific ID online

Posted: Tue Aug 13, 2019 8:29 pm
by livesoft
I cannot tell if you are asking / replying to me or Xrayman69 or both of us or no one in particular. :)

My shares are non-covered, but that doesn't matter because I truly have only one purchase lot and have not reinvested dividends. With one single lot, the "Edit lots" page shows that one single lot and there is really nothing to edit. Vanguard will have the correct cost basis for me under any circumstances. Does that make sense?