What are your tax loss harvesting partners?

[childay]

tmark wrote:

I have other taxable accounts (again mostly with Targetdate funds) – does that change things for Betterment?

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The concern would be for a wash sale. So if you hold a fund in another account that is the same as one of the Betterment funds (or tracks the same index) then you would have to look at that.  Target-date funds would not be a concern.

[Notorious BNG]

What amount of loss does one start thinking about TLH? Is it an absolute amount or more a percentage?

Also, I wanted opinions on a couple funds I have in my retirement account possibly making TLH difficult due to possible wash sales
1) Vanguard Institutional Index I own in my retirement account vs Vanguard Total Stock Market Index
2) Blackrock International Index vs Vanguard Total International Index

[CPDoc07]

Does anyone know if it's possible to directly exchange a Vanguard mutual fund for an ETF from another company on the Vanguard website? The emerging markets partners listed above by WCI require this exchange, but it appears that Vanguard forces you to sell the mutual fund and then purchase the ETF using cash from your settlement fund.

[beagler]

CPDoc07 wrote:

Does anyone know if it’s possible to directly exchange a Vanguard mutual fund for an ETF from another company on the Vanguard website? The emerging markets partners listed above by WCI require this exchange, but it appears that Vanguard forces you to sell the mutual fund and then purchase the ETF using cash from your settlement fund.

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I had this exact problem last week. 1 day later and the ETF went up 1% so I "lost out" on the gain. In fact, I didn't buy the partner and now am stuck watching for the next drop to buy in... bothersome.

One solution is to pull some cash from emergency/savings account to allow simultaneous purchase of ETF and sale of mutual fund. Then move the proceeds from the mutual fund sale back to your emergency/savings account.

[VagabondMD]

I have added the Fidelity Zero funds to the mix.

[CPDoc07]

That sounds pretty reasonable. Thanks!

[Peds]

Notorious BNG wrote:

What amount of loss does one start thinking about TLH? Is it an absolute amount or more a percentage?

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i buy monthly. so if there is a loss, ill harvest it. smallest lot ive done is $12.

Notorious BNG wrote:

I wanted opinions on a couple funds I have in my retirement account

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the account is important. workplace (401k, etc) not included in wash sale rules. IRA (including spouse), included.

institutional is s&p, so a good TLH to total US. but you can only get that in a workplace plan, so it doesnt matter.

Blackrock uses MSCI. Vanguard uses FTSE.

 

[hypercube]

Due to recent market volatility,  I am looking into THL. Have only Vanguard accounts:  Please critique this partners, and any recommendations for Emergent Markets is appreciated :

Small Cap Value :  VSIAX (Small Cap Value),  VTWV (Russell 2000 ETF), VIOV (S&P 600 ETF), VTMSX (Tax managed small blend)

Mid Cap Value: VMVAX (Middle Cap Value), VEXAX (Middle Cap Blended), VOE (ETF Mid Cap Value) 

International: VTIAX (Total Int) =   VTMGX (Developed Market)   VFWAX (All World ex US)

Emergent Markets : VEMAX (Emergent Market) --> ?   

 

Thanks

[PhysicianOnFIRE]

A great list of TLH partners compiled at Physicians FInance Basics: https://physicianfinancebasics.com/t...ting-partners/
TLH Partners for Total U.S. Stock Market

Some options and their Expense Ratios (ER) are:

• VTI/VTSAX (Vanguard Total Stock Market ETF/fund), ER 0.03%, tracks CRSP U.S. Total Market Index
• VOO/VFIAX (Vanguard S&P 500 ETF/fund), ER 0.03%, tracks S&P 500
• VV/VLCAX (Vanguard Large Cap ETF/fund), ER 0.04%, tracks CRSP U.S. Large Cap Index
• FSKAX (Fidelity Total Stock Market Index Fund), ER 0.02%, tracks Dow Jones U.S. Total Stock Market Index
• FZROX (Fidelity Zero Total Market Index Fund), ER 0.0%, tracks Fidelity U.S. Total Investable Market Index
• ITOT (iShares Core S&P Total U.S. Stock Market ETF), ER 0.03%, tracks S&P Total Stock Market Index
• IVV (iShares Core S&P 500 ETF), ER 0.04%, tracks S&P 500
• SCHB (Schwab U.S. Broad Market ETF), ER 0.03%, tracks Dow Jones U.S. Broad Stock Market Index
• SPY (SPDR S&P 500 ETF), ER 0.09%, tracks S&P 500

TLH Partners for Total International Stock Market

• VXUS/VTIAX (Vanguard Total International Stock ETF/fund), ER 0.08%, tracks FTSE Global All Cap ex US Index
• IXUS (iShares Total International Stock ETF/fund), ER 0.08%, tracks MSCI ACWI ex-U.S. Investable Market Index
• VEU/VFWAX (Vanguard All-World ex-U.S. ETF/fund), ER 0.08%, tracks FTSE All-World ex US Index +/- VSS/VFSAX (Vanguard All World ex-U.S. Small Cap ETF/fund), ER 0.11%, tracks FTSE Global Small Cap ex US Index
• VEA/VTMGX (Vanguard Developed Market ETF/fund), ER 0.05%, tracks FTSE Developed All Cap ex US Index + VWO/VEMAX (Vanguard Emerging Market ETF/fund), ER 0.10%, tracks FTSE Emerging Markets All Cap China A Inclusion Index

Points to Note:

• VEU is mostly large and mid-cap companies. So, it is often recommended to add on some VSS for small-cap exposure in 85-90%:10-15% ratio. This is not an exact science.
• Similarly, VEA is only Developed market. So, add on VWO for Emerging market exposure (70:30 is commonly quoted) for a truer Total International holding.
• SCHF (Schwab International Equity ETF), ER 0.06%, tracks FTSE Developed ex-U.S. Index. Therefore this, by itself, is not a good replacement fund for Total International Market because it excludes emerging markets.
• IEFA (iShares Core MSCI EAFE ETF), ER 0.07%, is likewise, a holding of large and mid-cap companies in developed markets, excluding U.S. and Canada.

TLH Partners for U.S. Small Cap Value Holdings

For those who add a value tilt to their portfolio, domestic small cap holdings offers a fantastic TLH opportunity. Whenever there is market volatility, along with International stocks, small cap stocks are often the first to tumble.

• VBR/VSIAX (Vanguard Small Cap Value ETF/fund), ER 0.07%, tracks CRSP US Small Cap Value Index
• VIOV (Vanguard S&P Small Cap 600 Value ETF), ER 0.15%, tracks S&P Small-Cap 600 Value Index
• VTWV (Vanguard Russell 2000 Value ETF), ER 0.15%, tracks Russell 2000
• IJS (iShares S&P Small Cap 600 Value ETF), ER 0.25%, tracks S&P Small Cap 600 Index
• RZV (S&P Small Cap 600 Value ETF), ER 0.35%, tracks S&P Small Cap 600 Index
• SLYV (SPDR S&P Small Cap 600 Value ETF), ER 0.15%, tracks S&P small Cap 600 Index
• VB (Vanguard Small Cap ETF), ER 0.05%, tracks CRSP US Small Cap Index. It does not focus on value stocks.

As you can see, this is a problem since a bunch of the ETFs above track the same index. It will likely NOT be reported by your brokerage as a wash sale. So, it depends on your risk tolerance whether you want to defend your position to the IRS, if it comes to that. There are no known instances of the IRS flagging a wash sale though. Some other options:

These are either mid caps or small caps but without a value tilt.

• VOE/VMVAX (Vanguard Mid Cap Value ETF), ER 0.07%, tracks CRSP US Mid Cap Value Index: may be used in place of Small Cap holdings for a short duration if you are out of options
• IVOV (Vanguard S&P Mid Cap 400 Value ETF), ER 0.15%, tracks S&P Mid Cap 400
• IJJ (iShares S&P Mid Cap 400 Value ETF), ER 0.25%, tracks S&P Mid Cap 400 Index

TLH Partners for International Small Cap Value Holdings

• VSS/VFSAX (Vanguard FTSE All-World Ex-U.S. ETF/fund), ER 0.11%, tracks FTSE Global Small Cap ex US Index
• SCZ (iShares MSCI EAFE Small Cap ETF), ER 0.40%, tracks MSCI EAFE Small Cap Index
• SCHC (Schwab International Small Cap Equity ETF), ER 0.11%, tracks FTSE Developed Small Cap ex-U.S. Liquid Index
• FNDC (Schwab Fundamental International Small Company Index ETF), ER 0.39%, tracks Russell RAFI Developed ex US Small Company Index
• DLS (WisdomTree International Small Cap Dividend Fund), ER 0.58%

SCZ, SCHC, FNDC and DLS all limit themselves to small caps in developed markets only. VSS includes about 15-20% of Emerging Markets, too. Despite this, they are highly correlated and works for TLH purposes. TLH Partners for Emerging Markets Holdings

• VWO/VEMAX (Vanguard Emerging Market ETF/fund), ER 0.10%, tracks FTSE Emerging Markets All Cap China A Inclusion Index
• IEMG (iShares Emerging Markets ETF), ER 0.14%, tracks Core MSCI Emerging Market Index
• SCHE (Schwab Emerging Market Equity ETF), ER 0.11%, tracks FTSE Emerging Market Index
• SPEM (SPDR Portfolio Emerging Market ETF), ER 0.11%, tracks S&P Emerging Market Index

[Darkroominvestor]

What are tax loss harvesting partners for those of us who only use fidelity funds?

[Peds]

What are tax loss harvesting partners for those of us who only use fidelity funds?

theres a wiki
https://www.bogleheads.org/wiki/Fidelity

[ACN]

VTI to VFIAX thus far. Now I have another $7k in losses, can I go to VLCAX ?

[Peds]

VTI to VFIAX thus far. Now I have another $7k in losses, can I go to VLCAX ?

they are different.

[asakkings]

I am new to investing and TLH so I wanted to makes sure I did this right.

I had invested total of 15,000 in VTSAX in March, in 2 lots, one was more than a year ago with about 700 in long term capital gains and second one that I put in march and total ended up being 800 in loss. I exchanged all of it for VFIAX and captured 800 in loss and then market went down again few days later and did another exchange to VLCAX for about 2500 in loss. I dont have any money coming into any of my retirement accounts right now. Did I screw anything up?

VTSAX --> VFIAX--> VLCAX all within a week or so.

I plan to go back to VTSAX so time in late April or May.

[Peds]

as long as 31 days for VTSAX in april/may thats exactly what i did.