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Does Fido charge to reinvest dividends in a non NTF fund?
If you do an “in-kind” transfer of shares from a non-NTF house (Dodge & Cox for example) does Fidelity charge for reinvesting dividends into the same fund? Appreciate any insights from those who may have done this in the past.
Has this in-kind transfer happened or are you thinking about it?
D&C doesn't seem to be supported at Fidelity platform (NTF or TF). D&C tickers don't even pull up a quote at Fido site. So, such in-kind transfer may not even be allowed.
Has this in-kind transfer happened or are you thinking about it?
Thinking about it. Quite sure from past posters here that it is possible. Some have alluded to a reduced fee at Fidelity for adding shares to a D/C fund in a systematic manner - at least to the best of my recollection.
PS - If there is any prohibition against it, is it (or would it be) from D/C or from Fidelity?
Has this in-kind transfer happened or are you thinking about it?
D&C doesn't seem to be supported at Fidelity platform (NTF or TF). D&C tickers don't even pull up a quote at Fido site. So, such in-kind transfer may not even be allowed.
Has this in-kind transfer happened or are you thinking about it?
D&C doesn't seem to be supported at Fidelity platform (NTF or TF). D&C tickers don't even pull up a quote at Fido site. So, such in-kind transfer may not even be allowed.
No direct experience.
DODGX and DODWX transferred to Fidelity without issues. However, cost to trade is steep at 75 bucks. Not a problem for me since I just leave them alone.
If they charge me for distributions I'll be on the move again soon.
BTW, if you meet with a rep they will review your portfolio to see if they can handle everything in it.
@hank, I have been talking with Fidelity on this topic. D&C funds disappeared from Fidelity mutual fund listing in the last few weeks. Very strange since it was on their Transaction Fee platform for years. It is also strange that when you enter the D&C ticker symbol, nothing shows up. The representative cannot explain that either.
If you perform a trade on D&C fund (as testing), it will tell you the $2,500 minimum and $49.95 transaction fee. It seems that D&C funds are still sold through Fidelity but somewhere in the maintenance process it got foul up.
This needs to be resolved on Fidelity side before you perform the in-kind transfer. I would call their help desk.
If you perform a trade on D&C fund (as testing), it will tell you the $2,500 minimum and $49.95 transaction fee. It seems that D&C funds are still sold through Fidelity but somewhere in the maintenance process it got foul up.
That's interesting. I ran my test on a Dodge fund in my IRA and got the 75$ quote.
My test was for Fido without login and "Dodge & Cox" or "D&C" or "DODIX" or "DODFX" pulled up BLANKs from Fido search box. Good that others pointed out that this may be a site glitch.
The rep was puzzled too. I suggested they issue a ticket to resolve this internally. Fidelity has been very responsive in the past. Will continue checking.
DODGX and DODWX transferred to Fidelity without issues. However, cost to trade is steep at 75 bucks. Not a problem for me since I just leave them alone. If they charge me for distributions I'll be on the move again soon.
Yes, That’s my thinking. The amount still with D/C is relatively small. Makes sense for me to consolidate everything. Frankly, even if dividends couldn’t be reinvested (free of charge) I’d be comfortable with that and could roll those into a different (NTF) fund.
The dividend and cap gain distribution will be reinvest without transaction fee. You can to decide if the distribution goes to the sweep account (money market) or reinvest. Make sure you make this selection online.
Learned from @msf years ago, you can buy more later for $5 transaction fee using their automatic investment feature: schedule the purchase day and the $ amount. A second one is scheduled a monthly later but you can cancel it before the purchase date. As for selling TF funds, there is no transaction fee whereas Schwab charges the full transaction fee as buying.
“As for selling TF funds, there is no transaction fee whereas Schwab charges the full transaction fee as buying.”
Thanks @Sven. It never even occurred to me that anyone would charge for selling a fund you already owned. What I’ve learned in the past, however, that with Fido you would get hit with a fee if you transferred fund shares in that you hadn’t held for at least 60 days and than sold them prior to the 60 day threshold being met. (Obviously, they have access to those records.)
Trading ETFs and stocks have no holding periods for buy and sell. That is one of main driving force to use ETFs instead of mutual funds. However, there are excellent active managed mutual funds that have no equivalent ETFs.
Many brokerages charge for both buy and sell fund transactions. Back in the dark days (pre-2019) when most brokerages charged stock commissions, they charged fees on both ends. Should funds be any different?
As I recall, it was in the 1990s that Fidelity first went to a one-way (buy) fee of $75. Schwab took some time to follow before it changed from a $35 two-way fee to a $76 one-way fee. A few other brokerages gradually followed suit.
Some of the brokerages still charging fees on both ends include:
Vanguard: $20/trade. "Fees apply per trade for all purchases, sales, and exchanges, regardless of order size."
T. Rowe Price: $35/trade. "If you purchased a fund and paid a transaction fee, one will be charged upon its sale ..."
Merrill: $19.95/transaction. "Applies to buy, sell and exchanges."
My “Transfer-in-Kind” request went through Monday. Took around 10 days to complete. Previous transfers (D&C to Fido) were done after first liquidating the fund. Those executed faster - in 5-7 days. Today I logged in to direct Fido to “reinvest dividends & cap gains.” Interestingly, they’d already set it that way for me. (Must have carried over from D&C.) Looks like DODBX kicked out a quarterly dividend today. So I’ll get a definitive answer to my question by week’s end. Not expecting any problem. No plans to sell any of this fund. Suspect that could lead to charges if done too early.
Fidelity only charges transaction fees on TF funds for the purchase, not for the sale. And for TF funds, there is not the 60 day holding period like they have for NTF funds (The FundNetwork is their fancy name for it). The only possible fees you would pay would be any fees assessed by the fund itself for short term holding (and which I believe goes to the fund?)
Good for you! Five days to completion is quite fast since everything is done online and you submit the other brokerage statement as a PDF. Vanguard requires the paper forms and it takes about 10 days on an average.
FWIW, this represented the remainder of what I held for many years at D&C - so essentially closed that account. Since previous transfers came from income funds there, I didn’t think it necessary to do in-kind transfers and found suitable NTF funds for the proceeds at Fido. Both firms a pleasure to work with.
PDF is certainly better. However, I’ve been able to get away with uploading to Fido a simple screen shot of my D&C statements which I found easier to do. Yep. Those earlier ones came through quickly. And it appears D&C sent the proceeds of the liquidations via bank wire rather than slower EFT. To their credit, there was no “close out” fee at D&C which I’ve encountered with some companies in the past.
Comments
D&C doesn't seem to be supported at Fidelity platform (NTF or TF). D&C tickers don't even pull up a quote at Fido site. So, such in-kind transfer may not even be allowed.
No direct experience.
PS - If there is any prohibition against it, is it (or would it be) from D/C or from Fidelity?
The Fido search seems to be broken. If you search from its fund research page, you can find them: https://fundresearch.fidelity.com/mutual-funds/summary/256219106
If they charge me for distributions I'll be on the move again soon.
BTW, if you meet with a rep they will review your portfolio to see if they can handle everything in it.
If you perform a trade on D&C fund (as testing), it will tell you the $2,500 minimum and $49.95 transaction fee. It seems that D&C funds are still sold through Fidelity but somewhere in the maintenance process it got foul up.
This needs to be resolved on Fidelity side before you perform the in-kind transfer. I would call their help desk.
Learned from @msf years ago, you can buy more later for $5 transaction fee using their automatic investment feature: schedule the purchase day and the $ amount. A second one is scheduled a monthly later but you can cancel it before the purchase date. As for selling TF funds, there is no transaction fee whereas Schwab charges the full transaction fee as buying.
Thanks @Sven. It never even occurred to me that anyone would charge for selling a fund you already owned. What I’ve learned in the past, however, that with Fido you would get hit with a fee if you transferred fund shares in that you hadn’t held for at least 60 days and than sold them prior to the 60 day threshold being met. (Obviously, they have access to those records.)
As I recall, it was in the 1990s that Fidelity first went to a one-way (buy) fee of $75. Schwab took some time to follow before it changed from a $35 two-way fee to a $76 one-way fee. A few other brokerages gradually followed suit.
Some of the brokerages still charging fees on both ends include:
Vanguard: $20/trade. "Fees apply per trade for all purchases, sales, and exchanges, regardless of order size."
T. Rowe Price: $35/trade. "If you purchased a fund and paid a transaction fee, one will be charged upon its sale ..."
Merrill: $19.95/transaction. "Applies to buy, sell and exchanges."
Fidelity only charges transaction fees on TF funds for the purchase, not for the sale. And for TF funds, there is not the 60 day holding period like they have for NTF funds (The FundNetwork is their fancy name for it). The only possible fees you would pay would be any fees assessed by the fund itself for short term holding (and which I believe goes to the fund?)
FWIW, this represented the remainder of what I held for many years at D&C - so essentially closed that account. Since previous transfers came from income funds there, I didn’t think it necessary to do in-kind transfers and found suitable NTF funds for the proceeds at Fido. Both firms a pleasure to work with.
@Sven - Thanks.
PDF is certainly better. However, I’ve been able to get away with uploading to Fido a simple screen shot of my D&C statements which I found easier to do. Yep. Those earlier ones came through quickly. And it appears D&C sent the proceeds of the liquidations via bank wire rather than slower EFT. To their credit, there was no “close out” fee at D&C which I’ve encountered with some companies in the past.