I was wondering if anyone had an opinion on Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) vs. Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) for a taxable account. The after-tax return between the two varies depending on the timeframe.
Here is my portfolio:
http://www.bogleheads.org/forum/viewtop ... =1&t=89171
Thanks in advance!
VTMSX vs. VSMAX
Re: VTMSX vs. VSMAX
The two funds track different indexes, which is the reason for the performance difference. I prefer Tax-Managed Small-Cap because it has an inherent tax advantage (100% qualified dividends). However, if you use ETFs, VIOO is Vanguard's ETF which tracks the same S&P 600 small-cap index, and its lower costs are likely to cancel out the tax difference, particularly if the tax break on qualified dividends goes away.bob1234 wrote:I was wondering if anyone had an opinion on Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) vs. Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) for a taxable account. The after-tax return between the two varies depending on the timeframe.
Re: VTMSX vs. VSMAX
Thanks for the response! It was helpful.