The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: smallstache on December 22, 2018, 04:08:20 AM
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Any ideas for Vanguard funds to swap into for the purpose of harvesting losses in VTSAX? I was thinking a 50/50 mix of VIGAX and VVIAX. This would be a 31-day holding and then back to VTSAX.
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VLCAX = Large-Cap Index Fund (Admiral)
This is the fund I see most often recommended as a tax loss partner for VTSAX.
Performance has been very similar.
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What about buying VTSAX after selling VTI and Schwab Dividend Equity ETF in my Wealthfront account?
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What about buying VTSAX after selling VTI and Schwab Dividend Equity ETF in my Wealthfront account?
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I would not buy VTSAX within 30 days of selling VTI at a loss. Some would disagree, but I think most people would say that two investments that follow the same index are substantially identical.
The transactions being at different brokerages means that the brokerage won't flag it as a wash sale, but it's still a wash sale.
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What about buying VTSAX after selling VTI and Schwab Dividend Equity ETF in my Wealthfront account?
Sent from my iPhone using Tapatalk
I would not buy VTSAX within 30 days of selling VTI at a loss. Some would disagree, but I think most people would say that two investments that follow the same index are substantially identical.
The transactions being at different brokerages means that the brokerage won't flag it as a wash sale, but it's still a wash sale.
I second this advice. VTSAX and VTI don't just track the same index. Vanguard's ETFs are a share class of their index funds, so VTI and VTSAX are the same fund. It's as substantially identical as you are likely to get.
50/50 mix of VIGAX and VVIAX should work, as should using VLCAX.
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I've been thinking about the same thing and currently have holdings in both VTSAX and S&P500.
I assume, given there's ~80% overlap between these index that, I could trade one for the other immediately and avoid a wash sale?
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Technically, Schwab US Broad Market (SCHB) lacks about ~1000 stocks that are found in VTSAX / VTI. So in terms of not being "substantially identical", the points in favor are different brand names (Schwab vs Vanguard), different assets (~2500 vs ~3700 stocks), and different indices (DJ vs CSRP). You could also use the Russell 1000 (the 1000 largest stocks).
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I'm TLH'ing VTSAX into VLCAX. Portfolio Visualizer difference is $31,224 (VTSAX) vs $31,203 (VLCAX) from a $10k investment in Jan 2005. Not worth trying to simulate VTSAX into two funds. Also, don't seem any real reason to switch back to VTSAX unless more TLH opportunities arise.
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I just exchanged for VFIAX, not the exact same but the S&P 500 covers most of the total stock market. Planning to switch back in a month.