The Fidelity ZERO will save you $24 a year over Vanguard. With a $2,000 capital gains cost to moving, it will only take 83 years and 3 months to break even. It's actually a little more because during that whole time period Fidelity will kick out more capital gains distributions and the Vanguard structure doesn't do that.WanderingDoc wrote: ↑Sun Aug 05, 2018 1:23 pmThanks. I will be waiting a month, maybe 3. I transferred my USAA taxable account to Vanguard last year, that resulted in a ~$1400 capital gains tax payment. Since then, it has been in VTSAX, with about $7600 in gains, so that would result in a ~$2000 capital gains tax payment if I sell this to move to Fidelity. Starting to rethink things here
In addition, you have not yet held your money at Vanguard long enough to recoup your tax cost from moving from USAA (if you consider expense ratios only.) Making major moves in your financial accounts is like handling a bar of soap. Too much handling will shrink it dramatically.
I'm not even moving money out of my existing FIDELITY Total Stock Market fund into this new product! The savings are insignificant compared to the tax cost of moving.
Recognize that this is a brilliant MARKETING MOVE. But costs are already so low in our Vanguard accounts that eliminating them doesn't actually make much difference.
However, the new ZERO funds are perfect for new money. The fact that there's no minimum means I don't see why I wouldn't divert my new money to this fund. My only concern now is if the new funds will perform as well as the Vanguard funds. The differences in revenue sharing on securities lending will have an impact, but only time will tell if it is material.