Vanguard conversion from VGSLX mutual fund to VNQ ETF

Question

I recently converted shares of the Vanguard Real Estate Mutual Fund (VGSLX) to the ETF share class (VNQ)  I used the mutual fund conversion window and Quicken correctly adjusted the lot sizes, costs, etc. for several years of transactions.  In my account overview window using the Holdings button, Quicken shows the same number of shares as shown on the Vanguard website, and my monthly account statements reconcile correctly.

The problem I have is that when I go to the Online Center, use the Holdings tab for the account and use Compare to Portfolio I get a Securities Comparison Mismatch window which says that the shares reported are 775.114 shares of the mutual fund (I do not) and the shares reported are 0 shares of the ETF, which should be 775.114.  Attached is a screenshot of the securities mismatch.

By way of additional information the mutual fund was not set to average cost basis. I am running Quicken Deluxe for Windows R64.19

I tried to use placeholder entries to fix this, but when I did so I lost my cost basis information so I deleted the placeholder transactions.  Also, I checked in the Security List to verify that the mutual fund and ETF had the correct ticker symbols and CUSIPs.

Unfortunately, I did the conversion several months ago, so I can not readily restore a backup from before the conversion.

Any help as to how to address the securities mismatch would be appreciated.

SNAG-VGSLX VNQ.png

AllanDB · Answer

Thank you everyone for your responses.  FYI, I did not sell the ETF after the conversion and the conversion itself is not a taxable event for two reasons: 1) The ETF is just a different share class of the same portfolio as the mutual fund and 2) I neglected to mention that this transaction was in an IRA, so there would be no tax impact of the conversion.  The problem I am struggling with is why I always get the securities mismatch warning when I compare the Quicken portfolio to Vanguard's using the online center tool to compare portfolions.

NotACPA · Answer

https://community.quicken.com/discussion/comment/20507348#Comment_20507348

Not being a Vanguard customer, I was unaware of that.

I have a difficult time understanding how an MF and an ETF can be "the same fund", but I'll accept your expertise on such.

Jim_Harman · Answer

@NotACPA actually at Vanguard a conversion from a Vanguard mutual fund to the same ETF is not taxable because they are treated as different share classes of the same fund.

But as I note above there is an issue with back dated Mutual Fund Conversions which I can't find on my phone.