Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

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Topic Author
evenflow
Posts: 8
Joined: Mon Dec 30, 2019 10:33 pm

Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by evenflow » Fri May 22, 2020 4:01 pm

I noticed today that my VSTAX holdings are now split into a Cash and regular funds. This used to be only one row. What's going on here?

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typical.investor
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by typical.investor » Fri May 22, 2020 4:08 pm

evenflow wrote:
Fri May 22, 2020 4:01 pm
I noticed today that my VSTAX holdings are now split into a Cash and regular funds. This used to be only one row. What's going on here?

Image
Huh? Never seen that before. Head scratcher!

Was your account recently converted into the new type brokerage account?

Are returns the same? Does it say how much Is in each?

Vanguard Fan 1367
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Joined: Wed Feb 08, 2017 3:09 pm

Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by Vanguard Fan 1367 » Fri May 22, 2020 4:20 pm

I am getting the same in my Vanguard account with some of the funds. I agree that it leaves me dazed and confused🙄
Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it."

sycamore
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by sycamore » Fri May 22, 2020 4:21 pm

Couple more data points:
I do not see that split in any of my or spouse's accounts. All holdings show as just one entry as expected.
We have a mix of old platform/mutual fund-only and new platform/brokerage accounts.

MishkaWorries
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by MishkaWorries » Fri May 22, 2020 4:28 pm

Good old Vanguard. Come for the funds and stay for the 1990 era IT.
We plan. G-d laughs.

rkhusky
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by rkhusky » Fri May 22, 2020 4:36 pm

Ours looks normal. However, their site just stopped recognizing our computer and sent a security code.

Buford T Justice
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by Buford T Justice » Fri May 22, 2020 7:02 pm

I think it has to do with your brokerage account. If so, your investment will consolidate into the one fund in 30 days. It happens to me when I add shares in my brokerage account.

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BrandonBogle
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by BrandonBogle » Fri May 22, 2020 7:03 pm

When that happened to me, it was the result of moving shares over from Wells Fargo to Vanguard. At WF, I have margin enabled; at Vanguard, I do not. Somehow when the shares were transferred over, they were still earmarked as margin. When I called Vanguard, they made the necessary book entry change and next business day, all was well.

In my WF account, I see similar behavior for new shares I buy for the first 30 or 60 days or so. They can’t be put up for margin collateral until they age, so for a period of time I have two book entries.

So, any chance your Vanguard account has margin enabled?

Topic Author
evenflow
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by evenflow » Fri May 22, 2020 7:30 pm

Ah yes, my Vanguard account has margin enabled.

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BrandonBogle
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by BrandonBogle » Fri May 22, 2020 8:01 pm

evenflow wrote:
Fri May 22, 2020 7:30 pm
Ah yes, my Vanguard account has margin enabled.
Just give them a call and ask them to make a “book entry” to transfer the shares to your margin account, unless these are new shares. If they are new shares, they may switch over automatically after 30 days or so.

dru808
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by dru808 » Fri May 22, 2020 9:23 pm

rkhusky wrote:
Fri May 22, 2020 4:36 pm
Ours looks normal. However, their site just stopped recognizing our computer and sent a security code.
You sure it’s not just mandatory 2fa? I’ve had to have a code sent the last 4-5 times I’ve logged in.
60% US equity | 25% International equity | 15% US Treasury bonds

rkhusky
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by rkhusky » Fri May 22, 2020 10:06 pm

dru808 wrote:
Fri May 22, 2020 9:23 pm
rkhusky wrote:
Fri May 22, 2020 4:36 pm
Ours looks normal. However, their site just stopped recognizing our computer and sent a security code.
You sure it’s not just mandatory 2fa? I’ve had to have a code sent the last 4-5 times I’ve logged in.
Mandatory 2fa if they don’t recognize the computer. Haven’t had to since last year. Logged on without yesterday. Perhaps they require a periodic 2fa.

dru808
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Location: mid pac

Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by dru808 » Fri May 22, 2020 10:26 pm

rkhusky wrote:
Fri May 22, 2020 10:06 pm
dru808 wrote:
Fri May 22, 2020 9:23 pm
rkhusky wrote:
Fri May 22, 2020 4:36 pm
Ours looks normal. However, their site just stopped recognizing our computer and sent a security code.
You sure it’s not just mandatory 2fa? I’ve had to have a code sent the last 4-5 times I’ve logged in.
Mandatory 2fa if they don’t recognize the computer. Haven’t had to since last year. Logged on without yesterday. Perhaps they require a periodic 2fa.
I was wondering if they started mandatory on every login, I thought there were some threads mentioning this but didn’t really pay attention, I have to 2fa every time I log in, same tablet. Weird

Just logged on, no 2fa, this is weird
60% US equity | 25% International equity | 15% US Treasury bonds

Silence Dogood
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by Silence Dogood » Fri May 22, 2020 11:38 pm

dru808 wrote:
Fri May 22, 2020 10:26 pm
I was wondering if they started mandatory on every login, I thought there were some threads mentioning this but didn’t really pay attention, I have to 2fa every time I log in, same tablet. Weird

Just logged on, no 2fa, this is weird
My account is set up so that two-factor authentication is required each time I log on; also, I can only log on from a recognized device.

You may want to check your settings.

Topic Author
evenflow
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Joined: Mon Dec 30, 2019 10:33 pm

Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by evenflow » Sat May 23, 2020 1:33 pm

BrandonBogle wrote:
Fri May 22, 2020 8:01 pm
evenflow wrote:
Fri May 22, 2020 7:30 pm
Ah yes, my Vanguard account has margin enabled.
Just give them a call and ask them to make a “book entry” to transfer the shares to your margin account, unless these are new shares. If they are new shares, they may switch over automatically after 30 days or so.
Yes, they are new shares. So assuming they will switch over eventually.

baliktad
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by baliktad » Sat May 23, 2020 2:41 pm

TL;DR: You have a margin account and those "cash" shares are newly purchased, but will be switched over after 30 days.

When you have a margin account, your securities are technically held in one of 2 sub-accounts: a "margin subaccount" or a "cash subaccount." You may only borrow against the securities held in the margin subaccount, which is the reason for the distinction.
Everything held in the margin subaccount is shown "normally", because the default assumption for a margin account is that everything is held in the margin subaccount. But newly purchased securities or those which can't be borrowed against are held in the cash subaccount, and denoted as such with the "(Cash)" marker. Vanguard describes this behavior, and the fact that they automatically move eligible securities from the cash subaccount to the margin subaccount, in their margin documentation here:

https://vanguard.com/pdf/margin.pdf
Mutual funds and ETFs
Mutual funds held at Vanguard (including those from other providers) and Vanguard ETFs® aren’t marginable for the first 30 days. This means they must be paid for in full upon purchase but can be borrowed against after they’ve been held for 30 days (from the settlement date). You’ll see a line item labeled “transfer” in your transaction history on vanguard.com when a mutual fund or ETF becomes marginable. (We’ll automatically move it from the cash position to a margin position.) If you’ve previously held shares of the mutual fund or ETF, you may see two line items in your holdings: one for new shares (listed as cash) and one for previous shares that have been held for more than 30 days.

Vanguard Fan 1367
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Re: Why is my Vanguard VSTAX fund split into a a regular and (Cash) funds?

Post by Vanguard Fan 1367 » Sat May 23, 2020 5:09 pm

baliktad wrote:
Sat May 23, 2020 2:41 pm
TL;DR: You have a margin account and those "cash" shares are newly purchased, but will be switched over after 30 days.

When you have a margin account, your securities are technically held in one of 2 sub-accounts: a "margin subaccount" or a "cash subaccount." You may only borrow against the securities held in the margin subaccount, which is the reason for the distinction.
Everything held in the margin subaccount is shown "normally", because the default assumption for a margin account is that everything is held in the margin subaccount. But newly purchased securities or those which can't be borrowed against are held in the cash subaccount, and denoted as such with the "(Cash)" marker. Vanguard describes this behavior, and the fact that they automatically move eligible securities from the cash subaccount to the margin subaccount, in their margin documentation here:

https://vanguard.com/pdf/margin.pdf
Mutual funds and ETFs
Mutual funds held at Vanguard (including those from other providers) and Vanguard ETFs® aren’t marginable for the first 30 days. This means they must be paid for in full upon purchase but can be borrowed against after they’ve been held for 30 days (from the settlement date). You’ll see a line item labeled “transfer” in your transaction history on vanguard.com when a mutual fund or ETF becomes marginable. (We’ll automatically move it from the cash position to a margin position.) If you’ve previously held shares of the mutual fund or ETF, you may see two line items in your holdings: one for new shares (listed as cash) and one for previous shares that have been held for more than 30 days.
Thanks for posting the pdf! Nice to get rid of the confusion!
Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it."

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