markierussell wrote:For tax reasons I'm looking for a good index (or passive) ETF that minimizes dividend payout. I know there are many tax-managed funds, some of which do that. But few if any seem to have ETF versions. The only tax-managed Vanguard ETF I can find is VEA, a share class of Vanguard Tax-Managed International Fund. But it invests in foreign equities and does not say that it minimizes dividends (it mentions capital gains only). Any suggestions?
Are you a non-resident alien so that you pay 30% tax on all dividends? If not, then you have a tax reason for minimizing dividends, but also for maximizing the fraction which are qualified. VEA doesn't do much to minimize dividends, but it does have 100% qualified dividends, unlike most foreign funds, so it will lead to lower tax bills.
But all the low-dividend ETFs either have high expenses (which reduce the dividend in a way which doesn't benefit you) or track low-dividend sectors of the market. If you don't need to use ETFs, you could use Vanguard Tax-Managed Capital Appreciation, but even there, I would guess that 500 Index will save you as much in expenses as it costs in taxes, and Total Stock Market Index is as good as 80% Tax-Managed Capital Appreciation and 20% Tax-Managed Small-Cap.
It is possible to have low-dividend ETFs in your taxable account and high-dividend ETFs or funds in your 401(k); you could have growth ETFs in taxable and value ETFs in tax-deferred.