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Wondering how to convert to Admiral Shares?

March 03, 2015

If you have investments that qualify, it's easy to convert them to our lower-cost Admiral™ Shares—a separate share class of existing Vanguard mutual funds with average expense ratios that are 85% lower than the industry average.* You can have us convert them for you during one of our regular eligibility reviews or do it yourself in just a few simple steps.

Have us do it for you

Periodically, we review shareholders' account balances to see who's eligible for conversion to Admiral Shares. You qualify for Admiral Shares if you invest:

  • $10,000 or more in a Vanguard index fund that offers Admiral Shares (the minimum for certain sector index funds and tax-managed funds is $100,000).
  • $50,000 or more in a Vanguard actively managed fund that offers Admiral Shares.

(Institutional clients should contact Vanguard for special eligibility rules that may apply to them.)

If you meet the conversion qualifications, we'll notify you during our eligibility review. You'll receive notification from us in plenty of time to opt out before we perform the conversion. However, when you convert, the savings can really add up. Our fund comparison tool lets you see how much you could save—and how much more of your investing dollars would continue working for you—if you choose Admiral Shares.

Do it yourself, at your convenience

The fastest, easiest way to convert to Admiral Shares is online. Just follow these steps:

1. Log on to your account.

2. Select the Buy & Sell tab.

3. Click Convert to Admiral Shares and follow the remaining online instructions. (See a sample step-by-step process.) »

If you prefer, you can also request conversion by phone or in writing.

After the conversion

Once the conversion is complete, you'll remain invested in the same Vanguard fund(s). We'll automatically transfer your account options, cost basis information, and checkwriting privileges to your new Admiral Shares. We'll send you a confirmation of the transaction(s) as well as a separate confirmation for any account options that we carried over to your new Admiral Shares.

If you have checkwriting established on any of your qualifying funds, you'll automatically receive a new checkbook as part of the conversion.

Some other points to consider

  • Changes from Investor Shares to Admiral Shares of the same fund are tax-free.
  • Because a fund's Admiral Shares price (its net asset value) may differ from its Investor Shares price, the number of shares you own could change, but the dollar value of your new Admiral Shares will equal the dollar value of your original Investor Shares at the time of the change.
  • If for any reason your fund account balance falls below the new Admiral Shares minimum before the conversion, your fund account won't be promoted to Admiral Shares.

*Vanguard Admiral Shares fund expense ratio 0.15%, industry average 1.02% as of December 31, 2014. Sources: Vanguard and Lipper, a Thomson Reuters Company.

Note:

  • All investing is subject to risk, including the possible loss of the money you invest.
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