Author Topic: Transition to Fidelity ZERO International Fund in order to tax loss harvest?  (Read 829 times)

Aggie1999

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I've currently got a few thousand dollars in paper losses from money I dropped into FIDELITY TOTAL INTL INDEX Premium (FTIPX) at the beginning of the year. I was thinking about doing some tax loss harvesting. Any thoughts on selling my FTIPX stake and buying Fidelity's new zero fee international fund (FZILX) for the purpose of tax loss harvesting? Since the zero fee fund tracks Fidelity's own in-house index, I'm assuming it would pass the wash sale rule. Any better route you would recommend to capture the losses while keeping the money invested in a total international index based fund/etf?

Any advise is appreciated. This will be my first time trying to tax loss harvest.

ILikeDividends

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I have a nearly identical plan to do that at Schwab.

I currently have about 2K of paper losses in Schwab's emerging market ETF: SCHE.

I need to wait until Sept 17 to avoid the wash sale rule (I rebalanced last month).  Then I plan on selling SCHE and buying the same dollar equivalent of the Ishares EEM ETF;  different symbol, different per-share pricing, identical chart pattern.

I'm not a tax expert, but if the IRS considers this the same equity they can damn well catch me themselves.  ;)
« Last Edit: September 04, 2018, 09:57:56 PM by ILikeDividends »

Systems101

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Any advise is appreciated. This will be my first time trying to tax loss harvest.

You're on the right track.  This shows you how Wealthfront does it: https://support.wealthfront.com/hc/en-us/articles/210999343-What-ETFs-does-Wealthfront-use-to-implement-tax-loss-harvesting-

... the main thing they seem to do is swap what index each alternative is tracking (which is what it looks like you are doing as well).

I plan on selling SCHE and buying the same dollar equivalent of the Ishares EEM ETF

My SCHE alternative is IEMG... having looked at EEM, you will find IEMG is lower fees and extends into more/smaller stocks, so it outperforms EEM over time (in case it goes up in the 30 days enough that you don't want to capture the gains).  YMMV.

ILikeDividends

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I plan on selling SCHE and buying the same dollar equivalent of the Ishares EEM ETF

My SCHE alternative is IEMG... having looked at EEM, you will find IEMG is lower fees and extends into more/smaller stocks, so it outperforms EEM over time (in case it goes up in the 30 days enough that you don't want to capture the gains).  YMMV.

Thanks for the tip.  BTW, I also have smaller losses in Shwab's SCHF, developed markets ex-US, that I would like to harvest.  You wouldn't happen to have an equivalent ETF off the top of your head?
« Last Edit: September 04, 2018, 10:44:32 PM by ILikeDividends »

Systems101

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I also have smaller losses in Shwab's SCHF, developed markets ex-US, that I would like to harvest.  You wouldn't happen to have an equivalent ETF off the top of your head?

VEA (reverse of the swap Wealthfront does)


Aggie1999

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Any thoughts on FSGDX (Fidelity Global ex U.S. Index Fund - Premium Class) vs FZILX (Fidelity ZERO International Index Fund) for my purposes of tax loss harvesting from FTIPX (Fidelity Total International Index Fund - Premium Class)?