Worth it to convert VLCAX to VV for the lower expense ratio?
Posted: Wed Dec 25, 2019 9:01 pm
I have ended up after some tax loss harvesting last December with about $350k of VLCAX (Vanguard Large Cap). The ER is 0.05%. I currently have all mutual funds and no ETFs. I was wondering if it is a good idea to convert it to VV with an ER of 0.04%?
I do not plan to purchase any new VLCAX so the fact that I can't buy exact dollar amounts of more of it doesn't really affect me. I have dividend reinvestment turned off as well. It would maybe be easier for me for future tax loss harvesting if it stays in VLCAX (do a mutual fund exchange, something I'm used to, versus selling the ETF and buying VTSAX and worrying about if the market will go up or down a lot during the time gap). But in the back of my mind I'm thinking: what if the market never drops below the December 2018 level again and I end up keeping VLCAX forever/until I start selling equities in retirement? That's potentially a lot of years down the road (I'm mid-30's).
Any other pros or cons I haven't thought of?
I do not plan to purchase any new VLCAX so the fact that I can't buy exact dollar amounts of more of it doesn't really affect me. I have dividend reinvestment turned off as well. It would maybe be easier for me for future tax loss harvesting if it stays in VLCAX (do a mutual fund exchange, something I'm used to, versus selling the ETF and buying VTSAX and worrying about if the market will go up or down a lot during the time gap). But in the back of my mind I'm thinking: what if the market never drops below the December 2018 level again and I end up keeping VLCAX forever/until I start selling equities in retirement? That's potentially a lot of years down the road (I'm mid-30's).
Any other pros or cons I haven't thought of?