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changing mutual fund in vanguard account

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  • #1

    changing mutual fund in vanguard account

    I have a curious question I can't find out the answer to on the Vanguard website. Lets say I have a mutual fund with vanguard that I want to change to another mutual fund. So I go and sell my original fund and buy the new one. Is there a fee for selling the original fund. Also assume this is in a Roth account. Thanks.
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  • #2
    There normally isn't a fee for selling a fund. However some funds do charge a redemption fee if the fund isn't held for a specific amount of time (usually 2% if held less than 2 months). This is to prevent people from frequent trading and market timing. You can check the prospectus of the fund to see if they charge that fee.
    The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
    - Demosthenes

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    • #3
      kv is right. It's pretty painless as long as you're not moving into a fund with a purchase fee or out of a fund with a redemption fee (and haven't been in the fund long enough to avoid the fee). If you go here and look along the left side, you'll see the funds with the fees.

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      • #4
        Cool, so as long as their is no redemption fee, I am okay.
        Thanks.

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        • #5
          I have never been charged a fee.

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          • #6
            If there's no 12-b fees, you should be fine. I also know that Fidelity charges Short term trading fees, but that doesn't apply here.

            Sell the sucker, and pull the trigger on your new fund winner!

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            • #7
              Originally posted by jukebox9988 View Post
              If there's no 12-b fees, you should be fine. I also know that Fidelity charges Short term trading fees, but that doesn't apply here.

              Sell the sucker, and pull the trigger on your new fund winner!
              12-b-1 fees don't have anything to do with the selling of funds. If a fund has such a fee, it's built into the fund's expenses as an "operation expense" and is there regardless of when you sell it.

              Short term trading fees may play a roll in the OP's selling of the fund if the fund being sold has such a fee and it's sold within the specific redemption time period.
              The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
              - Demosthenes

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              • #8
                Originally posted by kv968 View Post
                12-b-1 fees don't have anything to do with the selling of funds. If a fund has such a fee, it's built into the fund's expenses as an "operation expense" and is there regardless of when you sell it.

                Short term trading fees may play a roll in the OP's selling of the fund if the fund being sold has such a fee and it's sold within the specific redemption time period.
                Yes, that's true, but a higher expense ratio does affect one's decision whether to buy into another fund.

                But usually Vanguard is good about excessive fees.

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