Vanguard Admiral™ Shares were created to recognize and encourage the cost savings stemming from large investment accounts and to pass on these savings to the shareholders who generate them. If your investment in a Vanguard fund meets certain minimums, you can take advantage of the cost savings generated by this lower-expense share class. More than 60 Vanguard funds offer Admiral Shares.
To qualify for Admiral Shares, you must meet a minimum investment of:
- $10,000 or more in an index fund that offers Admiral Shares.
- $50,000 or more in an actively managed fund that offers Admiral Shares.
- $100,000 or more in certain sector index funds and tax-managed funds that offer Admiral Shares.
Admiral Shares have operating expenses that are considerably lower than traditional Vanguard fund shares (Investor Shares). Over time, these savings could be significant for Admiral Shares investors.
You can combine some or all of the assets from several fund accounts and exchange them into a fund that offers Admiral Shares, but you should assess the impact of such a move on your asset allocation objectives.
Conversions to Admiral Shares from the same fund are tax-free. However, exchanges from Investor Shares to Admiral Shares of a different fund (in a nonretirement account) are taxable because an exchange is considered a sale and could produce a capital gain.
If the balance in an Admiral Shares account drops below the minimum, Vanguard will notify you, and you will have the opportunity to add to the account to meet the minimum. If the balance remains below the minimum, the account will be reclassified to Investor Class.
For specific information, contact us.