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Mututal Funds converted into ETFs

Hi: I recently converetd some of my Vanguard Admiral Mutual Funds into Equivalent Vanguard ETFs. Would like to know a correct way to enter this transaction in Quicken. Will this be a BUY/SELL vs. Mutual Fund Conversion Vs. Share Transfer? Do not want to loose the historical aspect of the data as it relates to performance / returns etc. Please advise.

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Answers

  • patel
    patel Member ✭✭
    Thank you Tom. My question was more related to "How should I enter the Mutual Fund conversion in Quicken?" and I think what you suggest is to use "Corporate Acquisition" functionality in Quicken. Please note, I do have few Mutual Funds (e.g. VFIAX) in 2 different Vanguard Accounts and I have mirrored the same in Quicken. Let me know your thoughts. Thank you in advance.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    If you are running the current version of Quicken AND you do not have "Use average cost" set for the "old" mutual fund then I believe the Mutual Fund Conversion will work correctly. 

    If these conditions are not met, you will probably be best off with the Corporate Acquisition, but then you will have to delete the transactions created by the acquisition in any accounts where you hold the security and it was not converted.

    Make sure you make a backup before entering these transactions.
    QWin Premier subscription
  • Ps56k2
    Ps56k2 SuperUser ✭✭✭✭✭
    thanks for the topic - didn't know you could do that at Vanguard...
    Why change from the MF to the ETF - ?
    Quicken 2020 Deluxe - Subscription - Windows 10
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    ps56k said:
    thanks for the topic - didn't know you could do that at Vanguard...
    Why change from the MF to the ETF - ?
    I'd suspect that the ETF has lower fees associated with it, thus a bit higher return.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    NotACPA said:
    ps56k said:
    thanks for the topic - didn't know you could do that at Vanguard...
    Why change from the MF to the ETF - ?
    I'd suspect that the ETF has lower fees associated with it, thus a bit higher return.

    Even more important can be the tax efficiency since ETFs almost never distribute capital gains but mutual funds can and do all the time.
  • RCinNJ
    RCinNJ Member ✭✭✭✭
    edited August 2019
    I am about to do this and found this thread looking for answers on how to maintain the exiting lots. My advisor at Vanguard tells me that the ETFs, for various reasons, are actually cheaper for Vanguard to manage and they are passing on the savings. Hence, he expects the cost advantage to be permanent.

    Regarding capital gains: As I understand it Vanguard has been doing some moves behind the scenes to keep the capital gains the same between the funds and the corresponding ETFs, so not so much for the difference in capital gains distributions for many other non-Vanguard ETFs (if interested you can Google the reason).

    Not clear to me from the answers so far the best way to convert and keep existing lots. I assume, but am not sure if, they will all be converted by Vanguard at the same time and hence the same conversion ratio. Can anyone with experience speak to this?

    Will "Mutual Fund Conversion" or "Corporate Acquisition" do the trick?

    Quicken for Mac Premier 2019, 5.12.2
  • mhead110
    mhead110 Member ✭✭
    note: I'm so sick of Vanguard's lousy web site(eg., it's not possible to see the cost basis info for non-taxable accounts? really? Like I don't want to know how those accounts are doing? etc.) and mediocre and short-houred customer support.... that I am moving all my Vanguard accts. to Schwab, which has a MUCH better web site and smart, 24/7 customer service. HOWEVER, it can be expensive to trade Vanguard mutual funds at Schwab, so I'm converting the ones I can, to ETF's, which don't cost to trade.
  • mhead110
    mhead110 Member ✭✭
    I have never trusted Quicken for Capital Gains info... so I am dreading what this conversion process & subsequent xfer to Schwab will do.... and now that all the financial institutions have convinced us that we don't need a paper trail... heaven knows what the basis is.
    At least Schwab makes it very easy to see cost basis of every purchase, and every reinvestment, in all types of accounts. (And also keeps a running total of the balance in the accounts) arrghhhh
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