Converting VTSAX to VTI

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
lazynovice
Posts: 150
Joined: Mon Apr 16, 2012 10:48 pm

Converting VTSAX to VTI

Post by lazynovice »

I have VTSAX shares that I would like to convert to VTI. I own both and want to consolidate to VTI. I use specific id and I only have covered shares.

By way of example this is one of my lots:

Purchase Date # of Shares Cost Basis

9/30/2013 119.017 5,073.695

I understand from previous posts that the cost basis per lot will stay the same, while the number of shares will change to ETF shares including fractional shares.

1) What happens to the purchase date? Is the original 9/30/2013 date retained? I have significant long term gains on these funds and I want to make sure that nothing I am doing changes them to short term. Can’t see why it would but thought I would get confirmation from someone who has done it.

2) I am transferring the shares to my Fidelity account after conversion. Has anyone had issues transferring fractional ETF shares out of Vanguard? I'm particularly interested in recent experience since fractional ETF trading has been introduced.
onceking
Posts: 3
Joined: Fri Apr 13, 2018 10:14 pm

Re: Converting VTSAX to VTI

Post by onceking »

I've done the same conversation for moving to Merrill edge.

1) purchase dates remain the same.
2) converted etf doesn't have fractional shares -- they are sold as part of conversation process.
Frugalbear
Posts: 243
Joined: Sun Jun 02, 2019 7:35 am

Re: Converting VTSAX to VTI

Post by Frugalbear »

Watching this thread--- didn't know there was a point in doing something like this... Look forward to the education
User avatar
anon_investor
Posts: 3499
Joined: Mon Jun 03, 2019 1:43 pm

Re: Converting VTSAX to VTI

Post by anon_investor »

onceking wrote: Sun Aug 16, 2020 6:27 pm I've done the same conversation for moving to Merrill edge.

1) purchase dates remain the same.
2) converted etf doesn't have fractional shares -- they are sold as part of conversation process.
Do you mean Vanguard will not issue fractional shares when the mutual fund is converted to ETF?
Topic Author
lazynovice
Posts: 150
Joined: Mon Apr 16, 2012 10:48 pm

Re: Converting VTSAX to VTI

Post by lazynovice »

onceking wrote: Sun Aug 16, 2020 6:27 pm I've done the same conversation for moving to Merrill edge.

1) purchase dates remain the same.
2) converted etf doesn't have fractional shares -- they are sold as part of conversation process.
The fractional shares are sold as part of the conversion process or the transfer process? Either one will cause me to have capital gains, although I guess by definition less than one share per lot.
onceking
Posts: 3
Joined: Fri Apr 13, 2018 10:14 pm

Re: Converting VTSAX to VTI

Post by onceking »

You ends with fractional lots. But combined, there is no fractional shares. So up to 1 share is sold as part of conversion process.

The sale is done as fifo cost basis.
arf30
Posts: 738
Joined: Sat Dec 28, 2013 11:55 am

Re: Converting VTSAX to VTI

Post by arf30 »

Curious about this topic as well, as I plan to eventually convert to ETF and transfer out. I'll probably wait until the conversion can be done through the website.
Topic Author
lazynovice
Posts: 150
Joined: Mon Apr 16, 2012 10:48 pm

Re: Converting VTSAX to VTI

Post by lazynovice »

I was not smart and moved the shares out of Vanguard to Fidelity. Fidelity is unable to convert them for me, so now, I will move them back, convert and move them back to Fidelity. Something to do with my free time, I guess. :oops:
TheDDC
Posts: 1125
Joined: Mon Jan 08, 2018 11:11 am

Re: Converting VTSAX to VTI

Post by TheDDC »

onceking wrote: Sun Aug 16, 2020 6:27 pm I've done the same conversation for moving to Merrill edge.

1) purchase dates remain the same.
2) converted etf doesn't have fractional shares -- they are sold as part of conversation process.
My understanding is that you don’t need to do this prior to moving to ME to continue to buy Vanguard mutual funds without a fee. A poster on here claimed he could buy the mutual fund equivalent (VTSAX) at ME using the automatic investment plan option for free. He seemed to indicate that this is not possible for all Vanguard mutual funds, however.

-TheDDC
Rules to wealth building: 90-100% VTSAX piled high and deep, 0-10% VIGAX tilt, 0% given away to banks, minimize amount given to medical-industrial complex
000
Posts: 2771
Joined: Thu Jul 23, 2020 12:04 am

Re: Converting VTSAX to VTI

Post by 000 »

None of my fractional shares were sold as part of the conversion process. There were no taxable events from converting.
Post Reply