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then repeat . i have been trading in and out of the etf GLD this year over 30x . it falls when market gets complacent . then something spooks it , it goes up , i sell it , and repeat . 32x i did this and over 30k in profits on just that one etf .
i have others i do that with too .
mutual funds will not let you trade in and out . like with fidelity you can not sell within 30 days of buying nor buy in and sell 6x in a year.
so etf's are great trading vehicles if you like a dund and want to trade it
Okay so I am right. Not a problem. It don't fit in my lifestyle. I like my investment style just the way it is. We've got enough on our plates to deal with without adding market watching.
Mathjak, when you sell the Admiral shares, you then buy a ETF from Vanguard and then move that to Fidelity?
I was wondering if Fidelity has a similar fund to Admiral?
nooooooooooooooo , you do not sell the admiral shares . that would be a taxable event in a brokerage account . rather they convert the shares to the etf version .
selling would mean i owe thousands in taxes , and if it was sold i could have just moved the cash and bought an etf at fidelity . but in this case nothing is sold , it is converted in like kind .
then , like all stock , the stock can be moved .
as far as fidelity they may have some funds that are convertible like an s&p 500 fund but you really have to check with them to see if they are doing conversions .
Last edited by mathjak107; 08-21-2017 at 03:07 AM..
Okay so I am right. Not a problem. It don't fit in my lifestyle. I like my investment style just the way it is. We've got enough on our plates to deal with without adding market watching.
It gives you more control of share prices when buy or sell. When it comes time to cash-in mutual funds you're at the mercy of the market when to sell.....so many times I've made a sale on what I thought was a good market day only to end up with a down day by 4 pm when share prices are established......
me too. i have entered orders earlier only to cancel the orders later . that happened to me the day trump won when markets reversed. fidelity lets you cancel but i don't think vanguard does .
but keep in mind all is not perfect in the etf's either . they have their own set of problems .
look at those poor souls who had stop limit orders on popular etf's like dvy the day of brexit .
the markets plunged so fast many etf's broke rank with the value of the actual assets . dvy plunged 35% while assets were only down 5% . orders were executed with this imbalance which lasted a few minutes .
etf's can be more volatile than the fund since etf's can be sold short .
there are discounts and premiums to asset value to be concerned with too . buy at a premium and sell at a discount and your loss is bigger than the open ended fund .
some high yield etf's had liquidity issues like 3rd ave .
etf bond funds are bad when it comes to spreads between premium and discount and typically are far greater than stock etf's .
Last edited by mathjak107; 08-21-2017 at 03:59 AM..
one thing i want to add if you do a conversion from a mutual fund account to a brokerage account and do an etf conversion to move is this .
most brokerages will only do statements quarterly . the older statements will not have the new brokerage account listed on them until as much as 3 months out .
for whatever reason the brokerage you are moving to may not except screen shots of your account balance as a legal document for moving shares .
we ran in to this yesterday when we were processing my new private client account at chase . jpm told the rep the screen shot was not acceptable . we called vanguard a few times yesterday but they have no way of generating a statement prematurely .
they gave us a number for another dept at vanguard who may be able to give us a letterhead with the account info and registration and e-mail it direct to jpm . then there is a chance their compliance dept will accept it as a "legal " document . we have to do a conference call with our jpm rep and vanguard this morning .
next statement is due early october from vanguard so it is quite a wait .
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