Vanguard lowers Admiral req's

[Onward]

This just made my day!

Effective today, Vanguard has reduced the minimum amount required to qualify for Admiral™ Shares to $10,000 for most of our broad-market index funds and $50,000 for actively managed funds, down from the previous $100,000 minimum.

https://personal.vanguard.com/us/insights/article/fund-announcement-10062010

 

[Lisa99]

Thanks for sharing! Wonderful news.

 

[Automatika]

Darn, just bought VWIAX...

 

[ziggy29]

Thanks for this. My mom's Vanguard IRA has several positions less than $100K but more than $10K. Time to look into this.

 

[FUEGO]

I just noticed this bit of news this morning while cruising around vanguard.com and pondering how many more years it will take me to get to the $100,000 (or $50,000 mark for accounts over 10 years old). Worry no longer!

I recall that these conversions are non-taxable events. I certainly hope so, because I'm up for conversion on almost my entire taxable portfolio at vanguard (low six figures with some net gains in there). I wonder if we can exchange these funds today and still have it be a non-taxable transaction?

 

[FIREd]

I just noticed this bit of news this morning while cruising around vanguard.com and pondering how many more years it will take me to get to the $100,000 (or $50,000 mark for accounts over 10 years old). Worry no longer!

I recall that these conversions are non-taxable events. I certainly hope so, because I'm up for conversion on almost my entire taxable portfolio at vanguard (low six figures with some net gains in there). I wonder if we can exchange these funds today and still have it be a non-taxable transaction?

The conversions are non-taxable. To convert today, sign in to your account, click on "accounts and activity" and click on the "convert to admiral shares" link at the top of the page.

 

[Onward]

So you don't have to wait for VG to do the conversion automatically?

 

[ikubak]

I went out and converted several funds in various accounts. It's quick and easy.

 

[FIREd]

So you don't have to wait for VG to do the conversion automatically?

You can wait for VG to do the conversion automatically, but it might be a while before the conversion occurs on its own. Or you can direct VG to convert right now if you wish. I just converted several funds. Quick and easy.

 

[FUEGO]

The conversions are non-taxable. To convert today, sign in to your account, click on "accounts and activity" and click on the "convert to admiral shares" link at the top of the page.

Thanks a million (er, 10 basis points to be exact)!

Took 2 minutes.

I also just realized the small cap value fund does not have admiral share class available.

 

[tuixiu]

Hah! That just popped four of mine into admiral share status. Nice.

 

[hogtied]

Anyone know what happens if you own Vanguard mutual funds in another brokerage account? Will they still switch automatically?

 

[Onward]

To convert today, sign in to your account, click on "accounts and activity" and click on the "convert to admiral shares" link at the top of the page.

Done!

 

[donheff]

The conversions are non-taxable. To convert today, sign in to your account, click on "accounts and activity" and click on the "convert to admiral shares" link at the top of the page.

Thanks -- just did it.

 

[Texas Proud]

Done... except for one which I got a messge that I have to many account... what

Will have to try again later or give them a call...

 

[ksr]

This is great info, thank so much for posting it. I just converted a few funds. What an easy way to save some money.

 

[ziggy29]

psst... my mom's Wellesley shares are now Admiral shares.

 

[samclem]

Any thoughts on Vanguard's rationale for the change?
- Re-affirm their position as the low-cost provider of MFs (against increasing competition from FIDOs Spartan funds)?
- Take advantage of the recent highlighting of the issue of ETF liquididty during the "flash crash"? Some cost-conscious investors are now concerned and realize ETFs may not behave the same as MF's do in a crisis. If VGD can cut the ERs of MF's to make them comparable to ETFs, they may be able to gain some business.

 

[ziggy29]

All I know is that Vanguard, Fidelity and Schwab keep taking turns trying to one-up each other in terms of lowering commissions, fees, expenses and minimum investment requirements -- so investors are winning.

 

[powerplay]

Nice deal, I was able to convert 2 of mine.

 

[TromboneAl]

There goes the neighborhood.

 

[FUEGO]

- Re-affirm their position as the low-cost provider of MFs (against increasing competition from FIDOs Spartan funds)?

I imagine this is a big part of it. Taking away one of Fidelity's few competitive advantages when it comes to low cost index funds. The Spartan minimums being $10,000 probably drove Vanguard to lower theirs to $10,000.

For $100,000 at fidelity, you could buy up to the spartan Advantage class with even lower ER's than the regular Spartan funds at fidelity.

 

[CCdaCE]

{insert infomercial jingle}

"I no longer have to bring my money to Vanguard to achieve Admiral status, they brought Admiral status to ME! Vanguard, you rule."

{end jingle}



-CC

 

[travelover]

There goes the neighborhood.

Really! Now what can I brag about?

 

[FUEGO]

Really! Now what can I brag about?

Institutional fund owner. Price tag: $1 million.