[Bee]

Some wonderings about VTSAX and VTI… Would a transfer from VTSAX to VTI be a taxable event in a brokerage account because it’s going from a MF to ETF even if they are
practically the same thing?

(I’m thinking yes, but hoping not.)

Also, is it possible to divert any dividends from VTSAX to VTI without needing to manually do it or do the dividends need to go to a MM and then you manually buy VTI?

[Joie]

The other comments are incorrect.
If you are invested in VTSAX and you’re at Vanguard (only Vanguard can do it since the funds are theirs) – you don’t need to sell.

You can have them do a Mutual Fund to ETF conversion – from VTSAX to VTI.

You have to agree to all sorts of stipulations, mainly being that it cannot be undone and that you recognize that an ETF is traded throughout the day and prices change constantly.

I moved my brokerage to Fidelity a few months ago, from Vanguard. I was 100% VTSAX. Fidelity charges a fee for non-fidelity mutual funds at time of sale.

I was not about to move if that would have been the case.

Now that I am with Fidelity, dividends are easily reinvested in VTI automatically.

[Mark]

Leave it alone. U dont transfer. U sell. Then u buy. They’re the exact same thing. Just buy vti from now on

[Rawee]

Any equities event in a brokerage account is a taxable event, money market monthly dividends included. Re: VTSAX to VTI from dividends, I have 5 brokerages, all dividends just convert to cash unless you have DRIP enabled (dividend reinvestment).

From there, you can set-up automatic investments if your brokerage has it, to buy VTI automagically.

Robinhood, Sofi, Fidelity are the easiest to set-up automatic investments (weekly, bi-weekly, once-per-month, on this specific date, etc.) from up to 6,000 different stocks and ETFs.

Dinosaur Vanguard only allows you to auto-buy their ETF products.

[Author]

Posts