Effective yesterday, November 19th, the minimum investment for Admiral Shares of VTSAX (and 37 other index funds) has been lowered from $10,000 to $3,000!
This morning, I just so happened to login to my Vanguard account to add additional funds to my brokerage account (market was down = DISCOUNT!). I am currently invested in VTSMX since I had not reached the minimum of $10,000. Upon logging in and click on “My Accounts” I noticed this message on my brokerage account and my Roth IRA:
Wait… I did not have $10,000 yet in these accounts, how can I convert to Admiral Shares?? I clicked the button to “Convert to Admiral Shares,” and sure enough, I received a message from Vanguard saying that they have lowered minimum requirements for Admiral shares on almost 40 funds! For some reason, I was still unsure if my mind was playing tricks on me. Therefore, I went ahead and gave Vanguard a quick call asking them if this is true. Sure enough, the representative explained that effective yesterday, VTSAX along with 37 other funds have lowered their minimum investment requirements to invest in their Admiral Shares!
For everyone that has invested in VTSMX (expense ratio 0.14%, converting to the Admiral Shares of VTSAX (0.04%) is a no brainer! Even if you are not invested in the VTSMAX, it’s a worth logging into your Vanguard account, and seeing if your funds have been positively impacted by this change.