Vanguard lowering Admiral level to $3,000?

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tj
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Re: Vanguard lowering Admiral level to $3,000?

Post by tj » Wed Nov 21, 2018 10:18 am

It's too bad they didn't merge everything into Institutional Plus like Fidelity did. :D

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JamesSFO
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Re: Vanguard lowering Admiral level to $3,000?

Post by JamesSFO » Wed Nov 21, 2018 12:41 pm

This is a nice change to see. When combined with free ETF trades, VG seems to have a nice mix of offerings:

- No minimum: buy some ETFs at no charge
- $1K: buy a fund-of-funds (hopefully with even lower expenses soon :D)
- $3K+: Buy admiral shares

Given that VG does not have the flexibility to have out-and-out loss leaders this is quite competitive.

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BogleFanGal
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Re: Vanguard lowering Admiral level to $3,000?

Post by BogleFanGal » Wed Nov 21, 2018 12:45 pm

xenochrony wrote:
Mon Nov 19, 2018 2:12 pm
BogleFanGal wrote:
Mon Nov 19, 2018 10:58 am
Sure wish this applied to solo 401ks - hate being overcharged investor ER rates on total bond when I've met the admiral threshold a long time ago. The rate isn't competitive with Fidelity or other broad bond index funds. I really need to transfer to another company- but many have closing fees or don't allow traditional IRA rollovers into the fund. So I keep overpaying in hopes Vanguard's rate will get a bit better. :annoyed
I opened a solo 401k at VG 2 weeks ago and was surprised to see the VG Investor Class MFs I selected for my plan "CLOSED TO NEW INVESTORS." I called VG small biz customer service and they informed me that this change at VG (move from INV to ADM class shares) will apply to solo 401ks as well. Communications about this share class access for solo 401Ks will be forthcoming on their website and via email shortly.

At least that was what I was told today.

xenochrony
Just logged back on and saw this...that would be amazing news. I keep my fingers crossed...it's the only thing I hate about my solo 401k. Thank you for posting.
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Helo80
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Re: Vanguard lowering Admiral level to $3,000?

Post by Helo80 » Wed Nov 21, 2018 4:36 pm

MossySF wrote:
Wed Nov 21, 2018 2:17 am
Other fees sorta boggle the mind -- it's like "what, we still have printing and postage?" but I doubt Vanguard would lie about it.

Ok... I'll spot you that. It's going to be 55 cents to mail a first class letter soon. Bulk rates for pre-sorted lower the amount, but not anything super meaningful unless you mail out hundreds of thousands of letters like Vanguard.

I don't think Vanguard is doing anything nefarious with the money... And basically, whether it's $400 per $1 million with Vanguad or $150 per $1 million with Fidelity... $250 is not going to make our break any of our accounts. Even at $4000 versus $1500 for deca-millionaires, you have bigger things to worry about.

Drovor
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Re: Vanguard lowering Admiral level to $3,000?

Post by Drovor » Wed Nov 21, 2018 6:17 pm

Put in my request to convert my small allocation of TBM to admiral shares. Get to save a little more for not much effort. Looking forward to Total World's ER being lowered in a couple months as well.

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Re: Vanguard lowering Admiral level to $3,000?

Post by Pigeye Brewster » Wed Nov 21, 2018 9:15 pm

billfromct wrote:
Wed Nov 21, 2018 12:03 am
And I just finished memorizing all the Investor class Vanguard index ticker symbols!

Now I have to start memorizing all the Admiral index ticker symbols.

bill
Good problem to have... :beer

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Doc
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Re: Vanguard lowering Admiral level to $3,000?

Post by Doc » Thu Nov 22, 2018 9:08 am

Pigeye Brewster wrote:
Wed Nov 21, 2018 9:15 pm
billfromct wrote:
Wed Nov 21, 2018 12:03 am
And I just finished memorizing all the Investor class Vanguard index ticker symbols!

Now I have to start memorizing all the Admiral index ticker symbols.

bill
Good problem to have... :beer
But when you get to be my age you have to re-memorize them every day so it's not any additional work. :(
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.

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Re: Vanguard lowering Admiral level to $3,000?

Post by Spirit Rider » Thu Nov 22, 2018 11:02 am

Doc wrote:
Thu Nov 22, 2018 9:08 am
But when you get to be my age you have :oops: to re-memorize them every day so it's not any additional work. :(
:sharebeer

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Re: Vanguard lowering Admiral level to $3,000?

Post by RadAudit » Sun Nov 25, 2018 4:32 pm

Haven't read the entire thread. Did anyone else get a call from Vanguard asking if you needed help in completing the conversion to Admiral shares? Since I'm not used to mutual funds calling me, thought I'd ask.

My first attempt several days ago didn't go through. Today, apparently the computer glitch was fixed when I tried again. The computer reported the conversion request will be processed tomorrow.
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b0B
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Re: Vanguard lowering Admiral level to $3,000?

Post by b0B » Sun Nov 25, 2018 4:40 pm

billfromct wrote:
Wed Nov 21, 2018 12:03 am
And I just finished memorizing all the Investor class Vanguard index ticker symbols!

Now I have to start memorizing all the Admiral index ticker symbols.
I just realized why they did this! They got sick of explaining why NAESX doesn't start with V ! :wink:

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jhfenton
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Re: Vanguard lowering Admiral level to $3,000?

Post by jhfenton » Sun Nov 25, 2018 5:02 pm

b0B wrote:
Sun Nov 25, 2018 4:40 pm
billfromct wrote:
Wed Nov 21, 2018 12:03 am
And I just finished memorizing all the Investor class Vanguard index ticker symbols!

Now I have to start memorizing all the Admiral index ticker symbols.
I just realized why they did this! They got sick of explaining why NAESX doesn't start with V ! :wink:
You made me look that one up. :P I didn't move our accounts to Vanguard until a few years ago, so I never had to learn the Investor shares tickers. VMLTX is the exception. I don't have $50,000 to put in Vanguard Limited-Term Tax Exempt to get Admiral shares. Our taxable account is tiny.

zrzhu111
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Convert to Vanguard Admiral Shares

Post by zrzhu111 » Tue Nov 27, 2018 2:12 pm

[Thread merged into here, see below. --admin LadyGeek]

Just got an email from Vanguard, "Good news: We're making your index funds even better".

Our Admiral Shares were previously available to investors with over $10,000 per fund. Now we're lowering the minimum investment to $3,000 on 38 index funds.


Any reasons not to do it?

Silk McCue
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Re: Convert to Vanguard Admiral Shares

Post by Silk McCue » Tue Nov 27, 2018 2:19 pm

No reason not to. If you don't, they eventually will.

There was a lot of discussion on a thread when this announcement was made.

Cheers

UpperNwGuy
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Re: Convert to Vanguard Admiral Shares

Post by UpperNwGuy » Tue Nov 27, 2018 2:58 pm

I've converted two funds to Admiral in the last few days. The conversion process works very smoothly. How come didn't you know about this? Have you not been reading Bogleheads the past two weeks?

zrzhu111
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Re: Convert to Vanguard Admiral Shares

Post by zrzhu111 » Tue Nov 27, 2018 3:49 pm

UpperNwGuy wrote:
Tue Nov 27, 2018 2:58 pm
I've converted two funds to Admiral in the last few days. The conversion process works very smoothly. How come didn't you know about this? Have you not been reading Bogleheads the past two weeks?
:-( nope. Busy shopping. :) For some reason, I searched the site before posting the question, I didn't find an relevant posts. Thanks.

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jhfenton
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Re: Convert to Vanguard Admiral Shares

Post by jhfenton » Tue Nov 27, 2018 3:54 pm

zrzhu111 wrote:
Tue Nov 27, 2018 3:49 pm
:-( nope. Busy shopping. :) For some reason, I searched the site before posting the question, I didn't find an relevant posts. Thanks.
If you search for "admiral shares $3,000", it's the first thread. :beer

A few threads were merged into it, including one that started a few days earlier discussing the Total World stock fund, so it reads a bit oddly.

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LadyGeek
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Re: Vanguard lowering Admiral level to $3,000?

Post by LadyGeek » Tue Nov 27, 2018 4:15 pm

zrzhu111 - I merged your post into the on-going discussion. The combined thread is in the Investing - Theory, News & General forum.
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Doc
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Re: Vanguard lowering Admiral level to $3,000?

Post by Doc » Wed Nov 28, 2018 2:41 pm

Email from Vanguard received a few minutes ago:
Good news: We're making your index funds even better
Oboy. And with a link to follow to convert all our shares to Admiral. :beer

Followed the link with gusto.

Link:
Convert your shares Now"
Click. Click. Login....
"Error icon
No eligible funds found
You currently don't own any mutual funds that qualify for an Admiral™ Shares conversion.
:(

Way to go Vanguard.

If you really want to compete with Fidelity maybe spending a little more on IT instead of just reducing costs would be more helpful.

Question: Hey Vanguard, how many IT people do you have to lay off to reduce your e/r to pay for the new cheap Admiral shares. :twisted:
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.

Thegame14
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Vangaurd lowering minimums

Post by Thegame14 » Thu Nov 29, 2018 4:17 pm

[merged into existing thread - moderator prudent]

on 38 funds

https://finance.yahoo.com/news/vanguard ... 07779.html

This week, the company announced that it would lower the barrier to entry for 38 of its top-tier index funds from a minimum of $10,000 to $3,000, allowing for more investors to take advantage of the bulk discount.

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ps56k
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Vanguard - new Admiral $3,000 index funds

Post by ps56k » Thu Nov 29, 2018 7:27 pm

[Thread merged into here, see below. --admin LadyGeek]

just received this notice - so... it's $3,000 Admiral - or nothing ? - if the Investor Shares go away -
BTW - all of my Vanguard holdings are Admiral...

https://investornews.vanguard/our-index ... 29:101:FND

....
We’re lowering costs for more than 1 million current index fund investors and giving new investors one more reason to choose Vanguard.
To do that, we’re dropping the minimum investment for Admiral™ Shares on 38 index funds.

Our Admiral Shares were previously available to investors with over $10,000 per fund.
Now you’ll only need $3,000 to take advantage of the low expense ratios Admiral Shares offer.
In turn, we’re eliminating higher-cost Investor Shares of those same index funds for individual investors.*
Last edited by ps56k on Thu Nov 29, 2018 7:43 pm, edited 1 time in total.

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David Jay
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Re: Vanguard - new Admiral $3,000 index funds

Post by David Jay » Thu Nov 29, 2018 7:36 pm

ps56k wrote:
Thu Nov 29, 2018 7:27 pm
just received this notice - so... it's $3,000 Admiral - or nothing ? - if the Investor Shares go away -
I don’t get your point about “or nothing”. If you can get the same product for the same minimum with a lower ER, how is it that you feel that you are “losing” something?

BTW, you can still buy the ETF if you are allergic to Admiral Class funds.
Last edited by David Jay on Thu Nov 29, 2018 7:40 pm, edited 1 time in total.
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mhalley
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Re: Vanguard - new Admiral $3,000 index funds

Post by mhalley » Thu Nov 29, 2018 7:37 pm

It remains to be seen if investor shares will remain for 401ks etc. I think they should have cut the limit to 1k like for tr and star funds. Does this mean tr and ls funds er will go down also?

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SpringMan
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Re: Vanguard - new Admiral $3,000 index funds

Post by SpringMan » Thu Nov 29, 2018 7:47 pm

Investor class shares will still be used in fund of funds like they are currently used today.
Best Wishes, SpringMan

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David Jay
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Re: Vanguard - new Admiral $3,000 index funds

Post by David Jay » Thu Nov 29, 2018 7:53 pm

I had $5000 of Short Term Bond[Investor] in a small Roth account. Converted to STB[Admiral] today. Nice as can be.

[edit] converted VBISX to VBIRX
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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Re: Vanguard lowering Admiral level to $3,000?

Post by LadyGeek » Thu Nov 29, 2018 8:42 pm

I merged ps56k's thread into the on-going discussion.
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Re: Vanguard lowering Admiral level to $3,000?

Post by isotherm » Thu Dec 20, 2018 7:45 am

To answer the OP, here is the filing for the Total World admiral shares:
https://www.sec.gov/Archives/edgar/data ... merged.htm
It looks like 0.1% ER (same as the ETF) and available mid-January (60 days after November 19, 2018).

Other filings are available on the SEC site. The below article lists all of the funds that are gaining admiral shares:
https://pressroom.vanguard.com/news/Pre ... 11918.html
Vanguard also filed a preliminary registration statement with the Securities and Exchange Commission to launch Admiral Shares of five index funds: Vanguard FTSE Social Index Fund, Vanguard FTSE All-World ex-US Small Cap Index Fund, Vanguard High Dividend Yield Index Fund, Vanguard Long-Term Bond Index Fund, and Vanguard Total World Stock Index Fund.

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Re: Vanguard lowering Admiral level to $3,000?

Post by Ice-9 » Tue Feb 19, 2019 11:53 am

Looks like Admiral Shares of the Total World fund were made available a week or so ago:
https://investor.vanguard.com/mutual-fu ... ance/vtwax

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Re: Vanguard lowering Admiral level to $3,000?

Post by jhfenton » Tue Feb 19, 2019 1:28 pm

Ice-9 wrote:
Tue Feb 19, 2019 11:53 am
Looks like Admiral Shares of the Total World fund were made available a week or so ago:
https://investor.vanguard.com/mutual-fu ... ance/vtwax
On February 7: viewtopic.php?t=269979

Vanguard FTSE All-World ex-US Small Cap Admiral Shares (along with a few others) were offered on February 7 as well.

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