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Taxable Account: VTSAX vs VTI

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  • pierre
    replied
    Originally posted by JB14 View Post
    However, I assume Vanguard will allow partial share purchases someday down the line, doesn't Fidelity already allow it?
    yes

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  • JB14
    replied
    Originally posted by childay View Post

    I don't automate it. Periodic lump investing. Some cash drag there of course but I have been more vigilant on excess cash lately. First world problems.
    I prefer the ETF for tax loss harvesting
    That's what I figured was what people did, but I just want to automate it and not have to think about it However, I assume Vanguard will allow partial share purchases someday down the line, doesn't Fidelity already allow it?

    Why are ETFs better/easier for TLH?

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  • Larry Ragman
    replied
    Owning the index fund does not have the same risk as the TDF. Vanguard made a structural change to a TDF that caused institutions to sell one class of the TDF to buy another. This drove a loss for those holding the TDF in taxable (which was always inappropriate because of this risk) but not for the underlying funds. You should in fact own index funds in taxable.

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  • childay
    replied
    Originally posted by JB14 View Post
    How do people that invest in VTI deal with the problem of having to buy whole shares? For example, let's say I want to invest $1000/month, automate it to come out of the bank account. With VTSAX, the whole $1000 gets invested. If I am buying VTI, then there will be some left over that wasn't enough to buy a whole share. This is the reason I've always gone with the mutual fund Vs. the ETF. I want all the money working for me from day 1.
    I don't automate it. Periodic lump investing. Some cash drag there of course but I have been more vigilant on excess cash lately. First world problems.
    I prefer the ETF for tax loss harvesting

    Leave a comment:


  • JB14
    replied
    How do people that invest in VTI deal with the problem of having to buy whole shares? For example, let's say I want to invest $1000/month, automate it to come out of the bank account. With VTSAX, the whole $1000 gets invested. If I am buying VTI, then there will be some left over that wasn't enough to buy a whole share. This is the reason I've always gone with the mutual fund Vs. the ETF. I want all the money working for me from day 1.

    Leave a comment:


  • CordMcNally
    replied
    Vanguard mutual funds and ETFs have basically equal tax efficiency due to their dual-share fund structure: ETFs vs mutual funds - Bogleheads

    Here are other considerations to take into account: ETFs vs mutual funds - Bogleheads

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  • bovie
    replied
    Negligible. Same same.

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  • MillennialDoc
    started a topic Taxable Account: VTSAX vs VTI

    Taxable Account: VTSAX vs VTI

    Relatively newbie when it comes to taxable investing. Per my wife and I's IPS we are looking to invest in a total stock market index in a taxable account. We are planning to invest at Vanguard in either VTSAX or VTI.

    Is VTI more tax-efficient than VTSAX in a taxable account because it is an ETF and may have fewer taxable events? Or is the difference negligible? Also considering the story I heard on the podcast regarding the unexpected capital gains surprise from Vanguard's target date retirement fund; I am leaning towards an ETF in our taxable account.

    Any thoughts?

    Thanks.
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