What is the tax managed form of a fund worth?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.

What is the tax managed form of a fund worth?

Postby Random Walker » Sun Dec 30, 2012 6:48 pm

Small and value asset classes are considered relatively tax inefficient. Does anyone have a rough number in their head as to what additional return a TM small or TM value fund might yield compared to the non tax managed fund for the taxable investor?

Dave
Random Walker
 
Posts: 836
Joined: Fri Feb 23, 2007 8:21 pm

Re: What is the tax managed form of a fund worth?

Postby grabiner » Sun Dec 30, 2012 8:42 pm

Here's the comparison for Vanguard's tax-managed funds:

viewtopic.php?f=10&t=95518

With the development of ETFs, small-cap and value index funds can avoid most capital gains. Tax management can reduce dividend yields (TM Capital Appreciation) or have 100% qualified dividends (TM Small-Cap and TM International; none of Vanguard's other small-cap or international funds have 100%), so it still gives a small benefit. (The benefit from 100% qualified dividends might expire.)
David Grabiner
User avatar
grabiner
Advisory Board
 
Posts: 13548
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD


Return to Investing - Theory, News & General

Who is online

Users browsing this forum: Bing [Bot], Captain_Andrew, Exabot [Bot], mindboggling, Mureke, placeholder, TradingPlaces and 28 guests