Admiral Shares are a separate class of shares in Vanguard-administered mutual funds that offer lower fees compared to the standard Investor Share class. Vanguard offers Admiral Shares across a range of mutual funds, including index funds, tax-managed funds, actively managed funds, and sector-specific index funds. To qualify for Admiral Shares, investors in most index funds and tax-managed funds must maintain a minimum investment of $3,000, while for actively managed funds, one must have at least $50,000 invested. For sector-specific index funds, an investment of $100,000 or more is required.
The benefits of owning Admiral Shares include greater cost savings, which can help investors build more wealth over time. Vanguard evaluates its fund accounts to identify which are eligible for Admiral Shares. If an investors account holdings become eligible, Vanguard can convert their mutual fund shares into the Admiral Shares class, typically tax-free and at no cost. Investors can determine their account eligibility by logging into their Vanguard accounts.
Mutual funds offering Admiral Shares may be found through the online fund's screener on the Vanguard website. There are two ways to obtain shares in the Admiral class: buy them directly or convert Investor Shares to Admiral Shares. If an investor has Investor Shares and meets the Admiral Shares minimum, they can convert their shares to Admiral Shares through Vanguard's share-conversion webpage. In some cases, Vanguard will make the conversion automatically, as they periodically review client investments.
