Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

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frodobat
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Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by frodobat » Thu Mar 26, 2020 9:56 pm

Maintained a passive 3-fund portfolio for my IRA (Rollover) in US Vanguard of $50K for 2 years. Not a citizen or resident, and left the country 2 years ago, so I can't buy Mutual funds anymore. Current allocation 33% VBTLX (Bond), 23% VTIAX (International), 28% VTSAX (Stock), rest in settlement funds. I want to get rid of these positions for now, remain in cash (Settlement funds, not distribution) and after a few weeks I want to reinvest them into an ETF that tracks US Stocks. Which ETF should I look for?

I am young, married and have mid six figure savings outside the US. I will be actively watching the market for next few months.

typical.investor
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Re: Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by typical.investor » Thu Mar 26, 2020 11:09 pm

frodobat wrote:
Thu Mar 26, 2020 9:56 pm
Maintained a passive 3-fund portfolio for my IRA (Rollover) in US Vanguard of $50K for 2 years. Not a citizen or resident, and left the country 2 years ago, so I can't buy Mutual funds anymore. Current allocation 33% VBTLX (Bond), 23% VTIAX (International), 28% VTSAX (Stock), rest in settlement funds. I want to get rid of these positions for now, remain in cash (Settlement funds, not distribution) and after a few weeks I want to reinvest them into an ETF that tracks US Stocks. Which ETF should I look for?

I am young, married and have mid six figure savings outside the US. I will be actively watching the market for next few months.
Why not just get the ETF equivalent of the funds you have now -- BND, VXUS, and VTI?

Personally, I would just continue to hold the Mutual funds and add new money to the ETF. I don't have faith that going to cash today will mean better prices in a few weeks. Maybe it will, maybe it won't. I would just make new contributions and rebalance to take advantage of low prices. I wouldn't try to time things.

Topic Author
frodobat
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Re: Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by frodobat » Fri Mar 27, 2020 7:14 am

typical.investor wrote:
Thu Mar 26, 2020 11:09 pm
Why not just get the ETF equivalent of the funds you have now -- BND, VXUS, and VTI?
Thank you for your answer. Is there any drawback for buying ETFs over Admiral shares, such as high fees? Sorry, I have been out of this for a long time.
Personally, I would just continue to hold the Mutual funds and add new money to the ETF.
I won't be adding cash to this account as I have left the US and not a citizen of US. I am willing to increase my risk with this account since I have savings outside.

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galeno
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Re: Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by galeno » Fri Mar 27, 2020 12:16 pm

Start with the EXCELLENT 2 ETF port of X% VWRD (world stocks) + Y% AGGU (world bonds). If you want to "slice and dice" stay with Ireland Vanguard and Ireland iShares ETFs.

jjface
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Re: Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by jjface » Fri Mar 27, 2020 12:40 pm

You can convert mf into etf at vanguard. Just ask them to do it. I think you can still do that as a non resident. Nothing is sold. Not sure if that is what you want to do or if moving to cash was part of a market timing scheme.

At the end you'll have the same funds but in etf format vti, vxus and bnd

TedSwippet
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Re: Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by TedSwippet » Fri Mar 27, 2020 12:56 pm

galeno wrote:
Fri Mar 27, 2020 12:16 pm
Start with the EXCELLENT 2 ETF port of X% VWRD (world stocks) + Y% AGGU (world bonds). If you want to "slice and dice" stay with Ireland Vanguard and Ireland iShares ETFs.
Based on past posts, I think the topic author is a Canadian resident. In that case, US domiciled ETFs should be fine.

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galeno
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Re: Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by galeno » Fri Mar 27, 2020 12:58 pm

"At the end you'll have the same funds but in etf format vti, vxus and bnd"

As a non-resident you probably do not want to use the above USA-domicled ETFs. Use the equivalent Ireland domiciled ETFs of Vanguard and iShares.

Read the Wiki.

assyadh
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Re: Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by assyadh » Fri Mar 27, 2020 5:32 pm

galeno wrote:
Fri Mar 27, 2020 12:58 pm
"At the end you'll have the same funds but in etf format vti, vxus and bnd"

As a non-resident you probably do not want to use the above USA-domicled ETFs. Use the equivalent Ireland domiciled ETFs of Vanguard and iShares.

Read the Wiki.
This is inside an IRA so it will always be subject to the estate tax (unless presence of an estate tax treaty).

typical.investor
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Re: Selling Vanguard admiral shares MFs now to be on cash, which ETFs to buy later as a non-resident?

Post by typical.investor » Sat Mar 28, 2020 1:16 am

assyadh wrote:
Fri Mar 27, 2020 5:32 pm
galeno wrote:
Fri Mar 27, 2020 12:58 pm
"At the end you'll have the same funds but in etf format vti, vxus and bnd"

As a non-resident you probably do not want to use the above USA-domicled ETFs. Use the equivalent Ireland domiciled ETFs of Vanguard and iShares.

Read the Wiki.
This is inside an IRA so it will always be subject to the estate tax (unless presence of an estate tax treaty).
OP should just continue to hold the Mutual funds currently owned.

Selling now to try and time the market to buy at a future lower point is pointless I think.

And if the OP intends to time the market, are our normal suggestions for funds suitable to buy and hold even the best?

I’d suggest a different forum perhaps when I think about it, or are there good market timing threads here that I am unaware of?

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