Trading an Index Fund for an ETF (2024)

I'd like to sell all of my VIPSX shares and purchase VGT within my Roth IRA brokerage account.

How exactly is this done online?

When I enter the "VGT" ticker symbol in the search box, it returns 'no results'. But, when I enter "VG", a drop-down menu appears, that lists a couple dozen mutual funds beginning with those letters, none of which are ETFs, nor mutual fund equivalents of VGT.

This will be a two-step process:

1. Sell your mutual fund and have the cash stay in your Vanguard account ... most likely in the settlement fund.

2. Next buy VGT in a separate transaction a day later.

If you do not have the brokerage platform, then you cannot buy VGT. That is, if you are on the old mutual fund platform then there are more steps. Yes, I know you wrote "Roth brokerage account", but I don't believe what everyone types on bogleheads.org.

Of course, you can always use your phone to call up Vanguard and ask for help. That's what your phone is for.

joer1212 wrote: ↑Wed Feb 14, 2024 9:51 amI'd like to sell all of my VIPSX shares and purchase VGT within my Roth IRA brokerage account.

How exactly is this done online?

When I enter the "VGT" ticker symbol in the search box, it returns 'no results'. But, when I enter "VG", a drop-down menu appears, that lists a couple dozen mutual funds beginning with those letters, none of which are ETFs, nor mutual fund equivalents of VGT.

It sounds like you may not have converted your mutual fund account to a true brokerage account yet, if all you're being shown is mutual funds.
If you want to convert, call Vanguard.
If you don't want to convert, a quick Google search for 'vgt etf mutual fund equivalent' shows that VITAX would be a mutual fund equivalent possibility.

BogleTaxPro wrote: ↑Wed Feb 14, 2024 9:57 am

joer1212 wrote: ↑Wed Feb 14, 2024 9:51 amI'd like to sell all of my VIPSX shares and purchase VGT within my Roth IRA brokerage account.

How exactly is this done online?

When I enter the "VGT" ticker symbol in the search box, it returns 'no results'. But, when I enter "VG", a drop-down menu appears, that lists a couple dozen mutual funds beginning with those letters, none of which are ETFs, nor mutual fund equivalents of VGT.

It sounds like you may not have converted your mutual fund account to a true brokerage account yet, if all you're being shown is mutual funds.
If you want to convert, call Vanguard.
If you don't want to convert, a quick Google search for 'vgt etf mutual fund equivalent' shows that VITAX would be a mutual fund equivalent possibility.

I did, but I converted late (about 1.5-2 yrs ago).

Is is possible that all the features of the brokerage account are not available as a consequence of this late conversion? I vaguely recall reading something to that effect, when I was being prompted to convert my account.

Also, VITAX is an institutional fund, with a 100k minimum investment.

joer1212 wrote: ↑Wed Feb 14, 2024 10:46 am

BogleTaxPro wrote: ↑Wed Feb 14, 2024 9:57 am

joer1212 wrote: ↑Wed Feb 14, 2024 9:51 amI'd like to sell all of my VIPSX shares and purchase VGT within my Roth IRA brokerage account.

How exactly is this done online?

When I enter the "VGT" ticker symbol in the search box, it returns 'no results'. But, when I enter "VG", a drop-down menu appears, that lists a couple dozen mutual funds beginning with those letters, none of which are ETFs, nor mutual fund equivalents of VGT.

It sounds like you may not have converted your mutual fund account to a true brokerage account yet, if all you're being shown is mutual funds.
If you want to convert, call Vanguard.
If you don't want to convert, a quick Google search for 'vgt etf mutual fund equivalent' shows that VITAX would be a mutual fund equivalent possibility.

I did, but I converted late (about 1.5-2 yrs ago).

Is is possible that all the features of the brokerage account are not available as a consequence of this late conversion? I vaguely recall reading something to that effect, when I was being prompted to convert my account.

OK, time to call Vanguard.

BogleTaxPro wrote: ↑Wed Feb 14, 2024 10:57 am

joer1212 wrote: ↑Wed Feb 14, 2024 10:46 am

BogleTaxPro wrote: ↑Wed Feb 14, 2024 9:57 am

joer1212 wrote: ↑Wed Feb 14, 2024 9:51 amI'd like to sell all of my VIPSX shares and purchase VGT within my Roth IRA brokerage account.

How exactly is this done online?

When I enter the "VGT" ticker symbol in the search box, it returns 'no results'. But, when I enter "VG", a drop-down menu appears, that lists a couple dozen mutual funds beginning with those letters, none of which are ETFs, nor mutual fund equivalents of VGT.

It sounds like you may not have converted your mutual fund account to a true brokerage account yet, if all you're being shown is mutual funds.
If you want to convert, call Vanguard.
If you don't want to convert, a quick Google search for 'vgt etf mutual fund equivalent' shows that VITAX would be a mutual fund equivalent possibility.

I did, but I converted late (about 1.5-2 yrs ago).

Is is possible that all the features of the brokerage account are not available as a consequence of this late conversion? I vaguely recall reading something to that effect, when I was being prompted to convert my account.

OK, time to call Vanguard.

Before I do that, is is normal for only mutual funds (no ETFs) to be available in the drop down menu, when attempting to exchange one for the other? Someone on another thread mentioned that ETFs have to be purchased separately, and cannot be directly exchanged from a mutual fund.

joer1212 wrote: ↑Wed Feb 14, 2024 11:03 am

BogleTaxPro wrote: ↑Wed Feb 14, 2024 10:57 am

joer1212 wrote: ↑Wed Feb 14, 2024 10:46 am

BogleTaxPro wrote: ↑Wed Feb 14, 2024 9:57 am

joer1212 wrote: ↑Wed Feb 14, 2024 9:51 amI'd like to sell all of my VIPSX shares and purchase VGT within my Roth IRA brokerage account.

How exactly is this done online?

When I enter the "VGT" ticker symbol in the search box, it returns 'no results'. But, when I enter "VG", a drop-down menu appears, that lists a couple dozen mutual funds beginning with those letters, none of which are ETFs, nor mutual fund equivalents of VGT.

It sounds like you may not have converted your mutual fund account to a true brokerage account yet, if all you're being shown is mutual funds.
If you want to convert, call Vanguard.
If you don't want to convert, a quick Google search for 'vgt etf mutual fund equivalent' shows that VITAX would be a mutual fund equivalent possibility.

I did, but I converted late (about 1.5-2 yrs ago).

Is is possible that all the features of the brokerage account are not available as a consequence of this late conversion? I vaguely recall reading something to that effect, when I was being prompted to convert my account.

OK, time to call Vanguard.

Before I do that, is is normal for only mutual funds (no ETFs) to be available in the drop down menu, when attempting to exchange one for the other? Someone on another thread mentioned that ETFs have to be purchased separately, and cannot be directly exchanged from a mutual fund.

Yep, it's normal. See livesoft's post above for how to do this.

Regards,

livesoft wrote: ↑Wed Feb 14, 2024 9:55 amThis will be a two-step process:

1. Sell your mutual fund and have the cash stay in your Vanguard account ... most likely in the settlement fund.

2. Next buy VGT in a separate transaction a day later.

Will the proceeds of the VIPSX sale automatically go to my settlement fund in my Roth? I don't want to accidentally create a taxable event.

joer1212 wrote: ↑Wed Feb 14, 2024 12:09 pmWill the proceeds of the VIPSX sale automatically go to my settlement fund in my Roth? I don't want to accidentally create a taxable event.

I think so, but I cannot be sure because it should have been very obvious to you already where it would go. Also maybe you are trying to use your phone to make transactions which I never do, so I have no experience with using a phone for that. That's why I think you should call up Vanguard and get their help. Vanguard is supposed to have great customer service and interacting with Vanguard customer service over the phone will help you and also help them.

joer1212 wrote: ↑Wed Feb 14, 2024 12:09 pmWill the proceeds of the VIPSX sale automatically go to my settlement fund in my Roth? I don't want to accidentally create a taxable event.

You can't exchange from a mutual fund to an ETF (only from a mutual fund to a mutual fund).

You can sell a mutual fund and buy an ETF (or another mutual fund).

Vanguard also offers the ability to convert from a mutual fund to its corresponding ETF. This only works for VTSAX to VTI where the ETF is a share class of the mutual fund.

Since you're trying to go from a TIPS Fund (VIPSX) to an Information Tech ETF (VGT) you need to sell VIPSX and (once the money is available) buy VGT. (This is what livesoft is saying).

If you're worried about what will happen, and don't want to call Vanguard, then maybe sell $1 of VIPSX and see what happens to increase your confidence and competence.

livesoft wrote: ↑Wed Feb 14, 2024 12:53 pm

joer1212 wrote: ↑Wed Feb 14, 2024 12:09 pmWill the proceeds of the VIPSX sale automatically go to my settlement fund in my Roth? I don't want to accidentally create a taxable event.

I think so, but I cannot be sure because it should have been very obvious to you already where it would go. Also maybe you are trying to use your phone to make transactions which I never do, so I have no experience with using a phone for that. That's why I think you should call up Vanguard and get their help. Vanguard is supposed to have great customer service and interacting with Vanguard customer service over the phone will help you and also help them.

I'm going to try it on my desktop first (which is more full-featured than the phone website/app). I have more faith in that than a potentially inexperienced phone rep. This way, I can at least control the process online in real time and avoid mishaps. Thanks.