Re: Question for Vanguard Fund Holders?
Whether you need to pay tax or not will depend on whether you have a capital gain in the fund that you are exchanging out of. It may be that you have no gain, but you will have to determine whether this is the case or not. Any possible gain is not simply determined by the NAV of when you bought shares and now. You have to account for any distributions that might have been re-invested. too. Even if you have a capital gain, the amount may be small, so the tax consequences may not matter that much to you anyways.