Admiral shares: VWUSG vs VWUAG

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DDS
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Joined: Sat Jul 07, 2018 8:34 pm

Admiral shares: VWUSG vs VWUAG

Post by DDS » Thu Jul 12, 2018 12:07 am

New to this stuff (currently reading the Bogleheads books) and I started investing into VWUSG last year which has had great growth. Soon I’ll be eligible for admiral shares however VWUAG seems like its had significantly less growth YTD.

While the option the convert to admiral shares sounds great at a lower cost, is it worth doing? Until today I was under the assumption that admiral share and investor share funds were the same but with different costs. However it appears they are actually different funds with different holdings?

mcraepat9
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Re: Admiral shares: VWUSG vs VWUAG

Post by mcraepat9 » Thu Jul 12, 2018 1:24 am

DDS wrote:
Thu Jul 12, 2018 12:07 am
New to this stuff (currently reading the Bogleheads books) and I started investing into VWUSG last year which has had great growth. Soon I’ll be eligible for admiral shares however VWUAG seems like its had significantly less growth YTD.

While the option the convert to admiral shares sounds great at a lower cost, is it worth doing? Until today I was under the assumption that admiral share and investor share funds were the same but with different costs. However it appears they are actually different funds with different holdings?
Nobody knows tickers, so please let us know what these funds are - they didn’t come up when I typed them into
vanguard.

And all Admiral Shares have the same holdings as Investor Shares except with a lower cost. So yes 100% worth doing. I don’t think your description is correct - please tell us these fund names so we can doublecheck.
Amateur investors are not cool-headed logicians.

pkcrafter
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Re: Admiral shares: VWUSG vs VWUAG

Post by pkcrafter » Thu Jul 12, 2018 10:49 am

Welcome DDS,

All ticker symbols end with X, so I'm guessing you are concerned with VWUSX, Vanguard Growth investor shares and VWUAX, Vanguard Growth admiral shares.

These are two classes of the same fund.

https://investor.vanguard.com/mutual-fu ... olio/vwusx

https://investor.vanguard.com/mutual-fu ... olio/vwuax

Performance is very slightly different over 1 year (0.18%) due to slight difference in expense ratio. Perhaps you were comparing price, which is irrelevant.

You can convert to admiral once you have 10k, but if you don't after a specified time period Vanguard will automatically convert you.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

DDS
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Joined: Sat Jul 07, 2018 8:34 pm

Re: Admiral shares: VWUSG vs VWUAG

Post by DDS » Thu Jul 12, 2018 3:21 pm

Yep those are the right ones sorry was posting on my phone.

So if convert to admiral shares do I have to pay any sales fees or taxes? What if I decide to move money to another vanguard fund?

pkcrafter
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Re: Admiral shares: VWUSG vs VWUAG

Post by pkcrafter » Thu Jul 12, 2018 11:45 pm

DDS wrote:
Thu Jul 12, 2018 3:21 pm
Yep those are the right ones sorry was posting on my phone.

So if convert to admiral shares do I have to pay any sales fees or taxes? What if I decide to move money to another vanguard fund?
No fee and no tax on conversion to admiral shares. Yes on taxes if you shift to another fund. You didn't ask, but I think total stock market fund would be a better choice than a growth fund. Don't pay any attention to short term performance.

https://investor.vanguard.com/mutual-fu ... ral-shares

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

DDS
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Joined: Sat Jul 07, 2018 8:34 pm

Re: Admiral shares: VWUSG vs VWUAG

Post by DDS » Fri Jul 13, 2018 10:36 am

Thanks for the reply. So basically if I’m in a fund with admiral shares as an option it’s always better to go admiral?

I’m gonna do total stock market as well but my plan is to grow a fund to admiral shares then switch over to another and grow it monthly. I plan to do a post about current holdings/plans once I finish the 3 bogleheads books but for now just trying to make sure I’m not making any bad mistakes.

Currently maxing out backdoor Roth (3 years), placing $3k-5k/mo in VWUSX, maxing out safe harbor 401k at work (I own a practice), and then put a little fun money in Robinhood here and there. Once I hit $50k in VWUSX was gonna concert it to admiral shares and start on total stock.

IRT
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Re: Admiral shares: VWUSG vs VWUAG

Post by IRT » Fri Jul 13, 2018 11:25 am

DDS wrote:
Fri Jul 13, 2018 10:36 am
So basically if I’m in a fund with admiral shares as an option it’s always better to go admiral?
Yes.

Though when when you switch out in the future to a different allocation it will be taxable. Whenever possible we like to rebalance or reallocate within tax deferred accounts.

I played around with Robinhood a few years ago-- great app, it makes buying and selling individual stocks far too easy :)
You might change your mind after finishing the Bogle books.
Welcome!

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