Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

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CFM300
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Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by CFM300 »

In a different thread, fogalog posted that Vanguard's brokerage platform now allows one to direct dividends and capital gains to a different fund. Sure enough, I was able to change the settings in my account so that dividends and capital gains from all holdings in my taxable account go to my Treasury MM fund rather than my settlement fund.
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anagram
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by anagram »

CFM300 wrote: Mon May 13, 2024 10:59 pm In a different thread, fogalog posted that Vanguard's brokerage platform now allows one to direct dividends and capital gains to a different fund. Sure enough, I was able to change the settings in my account so that dividends and capital gains from all holdings in my taxable account go to my Treasury MM fund rather than my settlement fund.
Thank you for making this a new thread.

I also was able to change the settings in my account so that dividends and capital gains from all holdings in my taxable account go to my Treasury MM fund rather than my settlement fund.

This is a really nice update by Vanguard.
Thesaints
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by Thesaints »

Thank you for the info.
Just reestablished dividends and cg reinvestments as it was before the forced transition to brokerage.
Unfortunately, this is still not allowed in my Roth account. Looks like a coding issue, since when trying to change dividend payout I'm redirected to a webpage with the old look & feel, which only allows reinvestment, settlement fund, and cash payout.
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Cheez-It Guy
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by Cheez-It Guy »

Nice!

Maybe I should thank the holdouts. Maybe Vanguard is getting serious about kicking the remaining crutches out from under the mutual fund only platform. Either way, seems like good news. Thanks for the thread.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by marcopolo »

This include distributions from ETF and equities, or just from one mutual fund to another?

If the later, I guess welcome to the 21st century?
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asset_chaos
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by asset_chaos »

Thanks for the news. I'm going to reestablish dividend redirection right after dinner. Losing redirection was the chief reason I held out converting platforms until last year. Told that to the flagship rep every time they sent a note urging me to convert. I'm glad Vanguard listened and added the capability to the brokerage platform.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

Good news. Getting that minute per month back in my life.
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exodusing
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by exodusing »

I'm amazed Vanguard hasn't announced this and the only way we've learned about it is through fogalog's post.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

exodusing wrote: Tue May 14, 2024 7:04 am I'm amazed Vanguard hasn't announced this and the only way we've learned about it is through fogalog's post.
maybe outside of this forum it isn't a big deal
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rkhusky
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by rkhusky »

jebmke wrote: Tue May 14, 2024 7:37 am
exodusing wrote: Tue May 14, 2024 7:04 am I'm amazed Vanguard hasn't announced this and the only way we've learned about it is through fogalog's post.
maybe outside of this forum it isn't a big deal
When Vanguard had the Prime MM that paid quite a bit more than the settlement fund, it was a bigger deal. Now, not so much.
Else
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by Else »

exodusing wrote: Tue May 14, 2024 7:04 am I'm amazed Vanguard hasn't announced this and the only way we've learned about it is through fogalog's post.
I am not amazed. If they would have made an announcement, the system would be overwhelmed again by people calling. Better Vanguard Info gets out by a trickle.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

rkhusky wrote: Tue May 14, 2024 8:10 am
jebmke wrote: Tue May 14, 2024 7:37 am
exodusing wrote: Tue May 14, 2024 7:04 am I'm amazed Vanguard hasn't announced this and the only way we've learned about it is through fogalog's post.
maybe outside of this forum it isn't a big deal
When Vanguard had the Prime MM that paid quite a bit more than the settlement fund, it was a bigger deal. Now, not so much.
maybe. Our bond funds always paid the dividend at the end of the month and stock funds in the last two weeks of the quarter. So the most the cash could be "idle" in Prime was a couple of weeks. I suppose if one wants to leave the account totally unattended and un-monitored it could build up in the MM account and not get deployed for months; but there seem to be a lot of folks who check their accounts daily and weekly these days so who knows.
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stan1
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by stan1 »

As one would expect from Vanguard, it is a half baked solution. It works for mutual funds only, does not appear to work for ETFs including Vanguard ETFs which still have to pay out to settlement fund. Hopefully they realize it is half way done and keep working on it.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by exodusing »

Has this worked for everyone who has tried it?
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by UpperNwGuy »

jebmke wrote: Tue May 14, 2024 8:17 am
rkhusky wrote: Tue May 14, 2024 8:10 am
jebmke wrote: Tue May 14, 2024 7:37 am
exodusing wrote: Tue May 14, 2024 7:04 am I'm amazed Vanguard hasn't announced this and the only way we've learned about it is through fogalog's post.
maybe outside of this forum it isn't a big deal
When Vanguard had the Prime MM that paid quite a bit more than the settlement fund, it was a bigger deal. Now, not so much.
maybe. Our bond funds always paid the dividend at the end of the month and stock funds in the last two weeks of the quarter. So the most the cash could be "idle" in Prime was a couple of weeks. I suppose if one wants to leave the account totally unattended and un-monitored it could build up in the MM account and not get deployed for months; but there seem to be a lot of folks who check their accounts daily and weekly these days so who knows.
Glad to see that I am not the only one who keeps their money market balances low. I collect all the dividends in VMFXX each month and then invest it in one or more ETFs on the 7th of the month. My money market balance then drops to below the cost of one share of an ETF.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by UpperNwGuy »

stan1 wrote: Tue May 14, 2024 8:21 am As one would expect from Vanguard, it is a half baked solution. It works for mutual funds only, does not appear to work for ETFs including Vanguard ETFs which still have to pay out to settlement fund. Hopefully they realize it is half way done and keep working on it.
However, if Vanguard implemented this solution to remove the chief complaint of the old mutual fund platform users who refused to convert to the brokerage, then they have achieved their goal. ETFs don't exist in the old mutual fund platform.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

UpperNwGuy wrote: Tue May 14, 2024 8:24 am Glad to see that I am not the only one who keeps their money market balances low. I collect all the dividends in VMFXX each month and then invest it in one or more ETFs on the 7th of the month. My money market balance then drops to below the cost of one share of an ETF.
It takes me less than ten minutes per month to download our statement, invest idle cash, check transactions for anything hinky and confirm no unrealized losses needing to be harvested. Before my pension and SS started, it often was the case I was downloading the idle cash to the bank to spend but now, not so much.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by stan1 »

UpperNwGuy wrote: Tue May 14, 2024 8:26 am
stan1 wrote: Tue May 14, 2024 8:21 am As one would expect from Vanguard, it is a half baked solution. It works for mutual funds only, does not appear to work for ETFs including Vanguard ETFs which still have to pay out to settlement fund. Hopefully they realize it is half way done and keep working on it.
However, if Vanguard implemented this solution to remove the chief complaint of the old mutual fund platform users who refused to convert to the brokerage, then they have achieved their goal. ETFs don't exist in the old mutual fund platform.
Sorry, I'm not going to cut them a break and be an apologist like that. Vanguard has also encouraged people to convert mutual fund share classes to ETFs, and their own advisory services use ETFs.

As I wrote, hopefully they keep working on it and support dividend and capital gains reinvestment for everything soon. Keeping up with what they did in the past is not good enough.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by Bogle-Yardie »

This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

Bogle-Yardie wrote: Tue May 14, 2024 8:49 am This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
This is what I saw when I checked - mainly out of curiosity. Could be a rolling change which often makes sense with new code.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by stan1 »

Bogle-Yardie wrote: Tue May 14, 2024 8:49 am This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
Do you have mutual funds or ETFs? For me it is available for Vanguard mutual funds. I don't have any non-Vanguard mutual funds to check that. It is not available for my Vanguard ETFs or non-Vanguard ETFs.
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CFM300
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by CFM300 »

Below are the options I see for mutual funds in my taxable brokerage account. The page presenting the options has the visual style of the "new" redesigned website.

However, when I checked the dividend and capital gains settings for mutual funds in one of my IRAs (which is on the brokerage platform), an old-style webpage appears, and I do not have the options listed below, only the four options other posters mentioned above.

Reinvest
Reinvest your dividends into additional shares.

Transfer to my settlement fund
Transfer your dividends to your settlement fund to buy and sell securities.

Transfer to a different account
Transfer your dividends to a settlement fund of an account you can have access to buy and sell securities.

Transfer to a different fund
Transfer your dividends to another fund in this account.

Transfer to a bank account
Transfer your dividends to a bank account on file.
Last edited by CFM300 on Tue May 14, 2024 9:05 am, edited 1 time in total.
stan1
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by stan1 »

anagram wrote: Mon May 13, 2024 11:14 pm
I also was able to change the settings in my account so that dividends and capital gains from all holdings in my taxable account go to my Treasury MM fund rather than my settlement fund.

This is a really nice update by Vanguard.
Just for mutual funds or also for ETFs?
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

stan1 wrote: Tue May 14, 2024 8:57 am
Bogle-Yardie wrote: Tue May 14, 2024 8:49 am This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
Do you have mutual funds or ETFs? For me it is available for Vanguard mutual funds. I don't have any non-Vanguard mutual funds to check that. It is not available for my Vanguard ETFs or non-Vanguard ETFs.
I have a brokerage account with VG MF, VG ETFs and individual stocks. The options are as stated above for all assets right now.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by exodusing »

Bogle-Yardie wrote: Tue May 14, 2024 8:49 am This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
stan1
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by stan1 »

exodusing wrote: Tue May 14, 2024 9:06 am My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
Typical Vanguard, hopefully it doesn't take six months or a year or more before they fully implement it.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by Bogle-Yardie »

exodusing wrote: Tue May 14, 2024 9:06 am
Bogle-Yardie wrote: Tue May 14, 2024 8:49 am This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
That makes sense!
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by Nver2Late »

Cheez-It Guy wrote: Mon May 13, 2024 11:48 pm Nice!

Maybe I should thank the holdouts. Maybe Vanguard is getting serious about kicking the remaining crutches out from under the mutual fund only platform. Either way, seems like good news. Thanks for the thread.
After years of that "Transition now" button pulling up a window that said to call, last week I randomly pressed it again and voila, it worked. Finally last MF account is transitioned! Not sure when they fixed it - sometime between last October and this past week.
Last edited by Nver2Late on Tue May 14, 2024 10:51 am, edited 1 time in total.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by Else »

exodusing wrote: Tue May 14, 2024 9:06 am
Bogle-Yardie wrote: Tue May 14, 2024 8:49 am This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
Vanguard could be planning s.th. entirely different. Could they plan to move the mutual fund accounts from the legacy to the brokerage platform without changing the account to a brokerage account ? That way they could move everyone to the brokerage platform including customers prohibited from opening a brokerage account. For such a move they would need all the functions of the legacy platform.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by chinchin »

Else wrote: Tue May 14, 2024 10:43 am
exodusing wrote: Tue May 14, 2024 9:06 am
Bogle-Yardie wrote: Tue May 14, 2024 8:49 am This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
Vanguard could be planning s.th. entirely different. Could they plan to move the mutual fund accounts from the legacy to the brokerage platform without changing the account to a brokerage account ? That way they could move everyone to the brokerage platform including customers prohibited from opening a brokerage account. For such a move they would need all the functions of the legacy platform.
I don't think they can do that. There are some legal issues beyond the technical issues. For examples, in a brokerage account your assets are held in street name (i.e. the broker holds the "title" to the asset for you) while in a mutual fund account you hold the asset directly.
not financial advice
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by anagram »

exodusing wrote: Tue May 14, 2024 8:22 am Has this worked for everyone who has tried it?
How would anyone know? Until dividends or capital gains are declared no one will know.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

anagram wrote: Tue May 14, 2024 10:52 am
exodusing wrote: Tue May 14, 2024 8:22 am Has this worked for everyone who has tried it?
How would anyone know? Until dividends or capital gains are declared no one will know.
yes; sounds like a good reason for a limited rollout. If there are problems, fixing the results will probably be a manual effort for VG back office.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by anagram »

stan1 wrote: Tue May 14, 2024 9:25 am
exodusing wrote: Tue May 14, 2024 9:06 am My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
Typical Vanguard, hopefully it doesn't take six months or a year or more before they fully implement it.
No, typical of any large system where you roll out changes in stages. Apple does this with iOS and macOS updates as well. Regional roll outs so that if installation issues are found, the roll out is stopped, and this has happened.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by Else »

chinchin wrote: Tue May 14, 2024 10:46 am
Else wrote: Tue May 14, 2024 10:43 am
exodusing wrote: Tue May 14, 2024 9:06 am
Bogle-Yardie wrote: Tue May 14, 2024 8:49 am This did not work for me. I converted to the brokerage account a long time ago. My capital gain and dividend distribution options are still the same.
1) Reinvest
2) Transfer to settlement fund
3) Transfer to bank account
4) Send me a check.
I can only assume this feature is not available all brokerage platform clients as of yet.
My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
Vanguard could be planning s.th. entirely different. Could they plan to move the mutual fund accounts from the legacy to the brokerage platform without changing the account to a brokerage account ? That way they could move everyone to the brokerage platform including customers prohibited from opening a brokerage account. For such a move they would need all the functions of the legacy platform.
I don't think they can do that. There are some legal issues beyond the technical issues. For examples, in a brokerage account your assets are held in street name (i.e. the broker holds the "title" to the asset for you) while in a mutual fund account you hold the asset directly.
The account would not change to a brokerage account. It would remain a mutual fund only account that could be moved to the brokerage platform. Vanguard would just have to limit what those account holders can trade. No tech expert, but that should be possible.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by exodusing »

anagram wrote: Tue May 14, 2024 10:52 am
exodusing wrote: Tue May 14, 2024 8:22 am Has this worked for everyone who has tried it?
How would anyone know? Until dividends or capital gains are declared no one will know.
They'd have the option to direct dividends to something other than reinvest, settlement, bank, check. The answer to my question is "no" based on subsequent posts and my representative.

However, we won't know if dividends actually go where directed until dividends are distributed.
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anagram
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by anagram »

exodusing wrote: Tue May 14, 2024 11:03 am
anagram wrote: Tue May 14, 2024 10:52 am
exodusing wrote: Tue May 14, 2024 8:22 am Has this worked for everyone who has tried it?
How would anyone know? Until dividends or capital gains are declared no one will know.
They'd have the option to direct dividends to something other than reinvest, settlement, bank, check. The answer to my question is "no" based on subsequent posts and my representative.

However, we won't know if dividends actually go where directed until dividends are distributed.
I thought you were asking if dividend flow worked and the answer is no. No one knows yet.

If you are asking if one can change dividends to a MM fund rather than settlement, the answer is yes, if the roll out has reached you. My second post in the thread said I was able to make the change on my account.

I hope that helps.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

I don't use dividend redirection. For those who do, when does the transaction currently happen in your MF account. We have a mix of MF accounts and brokerage. Here is how dividends behave (using April statement) for us, again, not redirected; these are all VG mutual fund assets:

MF
Dividends paid 4/30 into MM (one account, not set for reinvestment)
Dividends reinvested 4/30 (one account, set for reinvestment)

Brokerage
Dividends paid 5/1 (one account, not set for reinvestment) [March divs paid 4/1 in statement, May statement will show April divs]
Dividends reinvested 4/30 (one account, set for reinvestment)

It would seem to me that if redirection were used in brokerage, this would occur on 5/1; I have no info on timing for same assets held on the MF platform.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by stan1 »

anagram wrote: Tue May 14, 2024 10:59 am
stan1 wrote: Tue May 14, 2024 9:25 am
exodusing wrote: Tue May 14, 2024 9:06 am My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
Typical Vanguard, hopefully it doesn't take six months or a year or more before they fully implement it.
No, typical of any large system where you roll out changes in stages. Apple does this with iOS and macOS updates as well. Regional roll outs so that if installation issues are found, the roll out is stopped, and this has happened.
Sure, days or maybe a week and hopefully that's what happens this time. We'll see how long it takes Vanguard to do this since reasonable roll out of new features has not bee their forte. With trading Vanguard ETFs in dollars and Cash Plus time from pilot to full roll out was over a year. Most businesses would go out of business if they did that.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

stan1 wrote: Tue May 14, 2024 1:05 pm
anagram wrote: Tue May 14, 2024 10:59 am
stan1 wrote: Tue May 14, 2024 9:25 am
exodusing wrote: Tue May 14, 2024 9:06 am My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
Typical Vanguard, hopefully it doesn't take six months or a year or more before they fully implement it.
No, typical of any large system where you roll out changes in stages. Apple does this with iOS and macOS updates as well. Regional roll outs so that if installation issues are found, the roll out is stopped, and this has happened.
Sure, days or maybe a week and hopefully that's what happens this time. We'll see how long it takes Vanguard to do this since reasonable roll out of new features has not bee their forte. With trading Vanguard ETFs in dollars and Cash Plus time from pilot to full roll out was over a year. Most businesses would go out of business if they did that.
They won't be able to see how this works until (a) enough people in the beta change their election, if already on brokerage and (b) dividends are paid -- the earliest of which should be June 1 for most bond funds and sometime later in June for many equity funds.

It is anybody's guess as to how long it takes to get both of these conditions met. I certainly wouldn't look to a general rollout until mid-summer, earliest.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by beyou »

stan1 wrote: Tue May 14, 2024 8:35 am
UpperNwGuy wrote: Tue May 14, 2024 8:26 am
stan1 wrote: Tue May 14, 2024 8:21 am As one would expect from Vanguard, it is a half baked solution. It works for mutual funds only, does not appear to work for ETFs including Vanguard ETFs which still have to pay out to settlement fund. Hopefully they realize it is half way done and keep working on it.
However, if Vanguard implemented this solution to remove the chief complaint of the old mutual fund platform users who refused to convert to the brokerage, then they have achieved their goal. ETFs don't exist in the old mutual fund platform.
Sorry, I'm not going to cut them a break and be an apologist like that. Vanguard has also encouraged people to convert mutual fund share classes to ETFs, and their own advisory services use ETFs.

As I wrote, hopefully they keep working on it and support dividend and capital gains reinvestment for everything soon. Keeping up with what they did in the past is not good enough.
Maybe you don’t realize that these are two completely separate actions, to transact on an exchange vs deposit cash into their own fund. One is an accounting entry internal to Vanguard, the other requires executing securities trades on public markets. Even if they intend to handle ETFs, it is not a single project to automate, and they may well choose not to do this.

What other brokers take dividends and automatically buy anything but same security or a cash sweep ? If they exist and this is important to you, move there. I don’t know if it exists because I don’t care and didn’t bother to research.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by stan1 »

Vanguard is the one who claims they are now a fintech not me. Let's see them live up to what they aspire to be. I hope they get there quickly.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by stan1 »

beyou wrote: Tue May 14, 2024 1:31 pm
stan1 wrote: Tue May 14, 2024 8:35 am
UpperNwGuy wrote: Tue May 14, 2024 8:26 am
stan1 wrote: Tue May 14, 2024 8:21 am As one would expect from Vanguard, it is a half baked solution. It works for mutual funds only, does not appear to work for ETFs including Vanguard ETFs which still have to pay out to settlement fund. Hopefully they realize it is half way done and keep working on it.
However, if Vanguard implemented this solution to remove the chief complaint of the old mutual fund platform users who refused to convert to the brokerage, then they have achieved their goal. ETFs don't exist in the old mutual fund platform.
Sorry, I'm not going to cut them a break and be an apologist like that. Vanguard has also encouraged people to convert mutual fund share classes to ETFs, and their own advisory services use ETFs.

As I wrote, hopefully they keep working on it and support dividend and capital gains reinvestment for everything soon. Keeping up with what they did in the past is not good enough.
Maybe you don’t realize that these are two completely separate actions, to transact on an exchange vs deposit cash into their own fund. One is an accounting entry internal to Vanguard, the other requires executing securities trades on public markets. Even if they intend to handle ETFs, it is not a single project to automate, and they may well choose not to do this.

What other brokers take dividends and automatically buy anything but same security or a cash sweep ? If they exist and this is important to you, move there. I don’t know if it exists because I don’t care and didn’t bother to research.
Topic is dividends and capital gains redirected to a mutual fund. That's what I'm asking for, ETF dividends to be redirected to Treasury Money Market fund (or even better allow Treasury Money Market fund to be the sweep).
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by anagram »

stan1 wrote: Tue May 14, 2024 1:05 pm
anagram wrote: Tue May 14, 2024 10:59 am
stan1 wrote: Tue May 14, 2024 9:25 am
exodusing wrote: Tue May 14, 2024 9:06 am My rep said that it's in a testing phase and is not yet available to all, so your assumption appears correct. I suppose it's better to test things before rolling out to all, but it is disappointing.
Typical Vanguard, hopefully it doesn't take six months or a year or more before they fully implement it.
No, typical of any large system where you roll out changes in stages. Apple does this with iOS and macOS updates as well. Regional roll outs so that if installation issues are found, the roll out is stopped, and this has happened.
Sure, days or maybe a week and hopefully that's what happens this time. We'll see how long it takes Vanguard to do this since reasonable roll out of new features has not bee their forte. With trading Vanguard ETFs in dollars and Cash Plus time from pilot to full roll out was over a year. Most businesses would go out of business if they did that.
No, not days or maybe a week. Until enough people make the changes on their profile AND dividends are declared, Vanguard will not see any flows.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by beyou »

stan1 wrote: Tue May 14, 2024 1:41 pm
beyou wrote: Tue May 14, 2024 1:31 pm
stan1 wrote: Tue May 14, 2024 8:35 am
UpperNwGuy wrote: Tue May 14, 2024 8:26 am
stan1 wrote: Tue May 14, 2024 8:21 am As one would expect from Vanguard, it is a half baked solution. It works for mutual funds only, does not appear to work for ETFs including Vanguard ETFs which still have to pay out to settlement fund. Hopefully they realize it is half way done and keep working on it.
However, if Vanguard implemented this solution to remove the chief complaint of the old mutual fund platform users who refused to convert to the brokerage, then they have achieved their goal. ETFs don't exist in the old mutual fund platform.
Sorry, I'm not going to cut them a break and be an apologist like that. Vanguard has also encouraged people to convert mutual fund share classes to ETFs, and their own advisory services use ETFs.

As I wrote, hopefully they keep working on it and support dividend and capital gains reinvestment for everything soon. Keeping up with what they did in the past is not good enough.
Maybe you don’t realize that these are two completely separate actions, to transact on an exchange vs deposit cash into their own fund. One is an accounting entry internal to Vanguard, the other requires executing securities trades on public markets. Even if they intend to handle ETFs, it is not a single project to automate, and they may well choose not to do this.

What other brokers take dividends and automatically buy anything but same security or a cash sweep ? If they exist and this is important to you, move there. I don’t know if it exists because I don’t care and didn’t bother to research.
Topic is dividends and capital gains redirected to a mutual fund. That's what I'm asking for, ETF dividends to be redirected to Treasury Money Market fund (or even better allow Treasury Money Market fund to be the sweep).
Allowing the Treasury MMKT fund to be a sweep/settlement fund would be a very reasonable and easy change for them to make if they want.
They already did the work to allow 2 choices (FDIC vs Federal MMKT) so adding a 3rd choice of another mmkt fund should be easy to add if they so choose. And this IS common industry practice at other brokers (to have a handful of sweep/settlement fund choices). I would probably use this feature too if available, though there are pros/cons. I do like that I keep a low balance in my sweep, in cause of any fraud. For instance I have checks, and any check washing could only hit my settlement fund since I do not choose to have a backup fund for overdrafts. I keep more in the treasury fund and not sure I would want it exposed to such fraud. If Vanguard ever added more banking services I would be even more hesitant (such as if there was ACH or bill pay or debit cards). Tradeoff between convenience and security.

Having dividends from securities move to any random fund including to a different ETF is NOT common practice and is a large change.
I wouldn't hold my breath for that.

Today I just periodically decide where I need $ and transfer from Federal MMKT either to another holding at Vanguard or to my bank to pay bills, as needed. Works fine for me.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by MadHungarian »

Yeah, not available for me yet either. But that was my experience with other Vanguard changes in the past too - they get gradually rolled out to various folks.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by fogalog »

UPDATE: I made the transition from legacy MF to Brokerage yesterday. All accounts moved across. History back to 2008 now available / downloadable.

My auto-invest options did not carry across but I was able to reconfigure them very quickly.

When I selected to change the dividend elections, the options I was presented were:

- Reinvest
- Transfer to my settlement fund
- Transfer to a different account
- Transfer to a different fund
- Transfer to a bank account

I selected the 4th option and it seemed to work just fine*. My adviser had offered to do it for me but I guess I got there before him.

I will also cross-post this on the Vanguard complaints thread for visibility.

*edit to add: by "seemed to work just fine" I mean the elections I have now in Brokerage are identical to what I had with the legacy MF account. I will not know if they get redirected correctly until one of them pays, of course.
Last edited by fogalog on Thu May 16, 2024 11:41 am, edited 2 times in total.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

fogalog wrote: Thu May 16, 2024 11:33 am selected the 4th option and it seemed to work just fine. My adviser had offered to do it for me but I guess I got there before him.
What fund has paid a dividend in the last couple of days?
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by fogalog »

jebmke wrote: Thu May 16, 2024 11:35 am
fogalog wrote: Thu May 16, 2024 11:33 am selected the 4th option and it seemed to work just fine. My adviser had offered to do it for me but I guess I got there before him.
What fund has paid a dividend in the last couple of days?
I just edited my post to clarify - changing the elections is what worked fine.
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by jebmke »

fogalog wrote: Thu May 16, 2024 11:40 am
jebmke wrote: Thu May 16, 2024 11:35 am
fogalog wrote: Thu May 16, 2024 11:33 am selected the 4th option and it seemed to work just fine. My adviser had offered to do it for me but I guess I got there before him.
What fund has paid a dividend in the last couple of days?
I just edited my post to clarify - changing the elections is what worked fine.
ah, so we are at the "taking reservations" stage :P
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Re: Vanguard brokerage platform now allows dividends and capital gains to be redirected to a different fund

Post by fogalog »

stan1 wrote: Tue May 14, 2024 8:21 am As one would expect from Vanguard, it is a half baked solution. It works for mutual funds only, does not appear to work for ETFs including Vanguard ETFs which still have to pay out to settlement fund. Hopefully they realize it is half way done and keep working on it.
Yes. And the other issue for ETFs (for me) was only being able to purchase whole shares versus a dollar amount like you can for MFs. I could be wrong - and I can't verify because old emails get automatically deleted - but I think I recall my rep telling me that they will also be allowing both for ETFs. I have no incentive to move to ETFs so that doesn't concern me but you may wish to ask.
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