Should You Convert Vanguard Mutual Funds to ETFs? (And How To Do It Tax-Free)

[@tlau4710]

Very useful video, I just did the conversion. It was pretty painless over the phone. Thank you!

[@5dumars]

Thanks for posting this. Going to be doing this as well now.

[@StanHasselback]

Thanks for this update. I have an automatized mutual fund right now but I'm nearing retirement so I'll be stopping that soon. I'd rather have the ETFs.

[@thomasrobinson7810]

Do you get a death step up in basis for both? Capital gains?

[@dukeofearlyretirement]

My understanding is that you get the same step up in basis for either one if they are in a taxable account.

[@davidkerrliving]

Hey Duke! Thinking of doing this, I hold VFIAX and want to convert to VOO, did you run into any issues with fractional shares of the mutual fund not being able to be converted? Would it be recommended to hold only whole shares of VFIAX before converting or is the process the same regardless?

[@dukeofearlyretirement]

No, this wasn't an issue. After the conversion, I had the correct number of shares and fractional shares of the ETFs to equal the value I had in the mutual fund.

[@sstewart_2001]

This only works for a small number of mutual funds.