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Personal Investments • Time to convert mutual funds to ETF?

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Didn't know that, no plan to change, I really like Vanguard. Why are ETFs easier to transfer out?
Hi all, curious what you guys think of converting my mutuals funds in taxable account: Total US Stock (VTSAX, exp 0.04%) and Total Inter Stock (VTIAX, exp 0.12%) to their respective ETFs VTI (0.03%) and VXUS (0.08%). I had avoided them in the past because of concerns about day trading etc, but it seems like a lower expense ratios and more tax efficiency? No brainer? I'm assuming it just involves a quick phone call to Vanguard. Any potential drawbacks?
Those Vanguard ETFs are just a different share class of those mutual funds, and have identical tax-efficiency. The small differences in expense ratio are very likely inconsequential.

So why bother to do the conversion? What is your purpose?

The conversion does require a require phone call, it cannot be done online.

There is no drawback that I can see, I just see no reason to do it.
If you are Vanguard and are not happy with their customer service and other issues, converting to ETFs will make it easier to transfer your assets as ETFs to another brokerage firm. In some cases, transferring ETFs will be less expensive than transferring mutual funds, depending on the fees of the receiving brokerage firm.

I believe you can hold investor-share mutual funds at other companies, but you may not be able to hold admiral shares at other companies

Statistics: Posted by muffins14 — Fri Mar 08, 2024 4:16 pm — Replies 17 — Views 552



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