Vanguard slashes minimums for Admiral Shares

[disneysteve]

We got notices this week that Vanguard has lowered the minimum investment necessary to qualify for Admiral Shares rather than Investor Shares. Admiral Shares have even lower expense ratios than the already low Investor Shares.

Previously, the minimum was $100,000. It is now just $10,000 "for most broad-market index funds and $50,000 for actively managed funds." That puts the lower cost shares within reach of many average investors since just 2 years of Roth contributions would put you at the $10,000 level. In typical Vanguard fashion, they make the switch automatically so investors need to do nothing except start enjoying the benefits of the lower expenses.

[KTP]

Sweet! Do they auto convert?

I have about $45,000 in VGIIX or whatever the name is of the intermediate term municipal bond fund. I had needed $100,000 in there to get the admiralty shares rate...I am guessing I will now get it?

[disneysteve]

Yes, they will convert qualifying accounts automatically. Either that or you can log onto your account, click on the Buy & Sell tab and select Convert to Admiral Shares.