vtclx vs. vti [Tax Managed Cap Appreciation vs. Total Stock]

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selftalk
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vtclx vs. vti [Tax Managed Cap Appreciation vs. Total Stock]

Post by selftalk » Tue Oct 14, 2014 6:29 pm

Is vtclx a better choice than vti for a taxable account?
Last edited by selftalk on Tue Oct 14, 2014 6:31 pm, edited 1 time in total.

livesoft
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Re: vtclx vs. vti

Post by livesoft » Tue Oct 14, 2014 6:30 pm

What are they?
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cfs
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Re: vtclx vs. vti

Post by cfs » Tue Oct 14, 2014 6:31 pm

selftalk wrote:Is vtclx a better choice than vti ?
Decoding the encrypted message:

Vanguard Tax-Managed Capital App Adm VTCLX

Vanguard Total Stock Market ETF VTI

Edit 1 - I was posting and did not see Livesoft's reply --- hint, it is a GOOD practice to DECIPHER all those crazy symbols before posting.
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selftalk
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Re: vtclx vs. vti

Post by selftalk » Tue Oct 14, 2014 6:34 pm

VTCLX is the Vanguard Tax Managed Capital Appreciation Fund while VTI is the etf for Vanguard Total Stock Market Index fund. Thank you CFS.

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grabiner
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Re: vtclx vs. vti [Tax Managed Cap Appreciation vs. Total St

Post by grabiner » Tue Oct 14, 2014 9:08 pm

See Tax-managed fund comparison on the wiki.

Tax-Managed Capital Appreciation is more comparable to 500 Index, as it doesn't have small-caps; if you want small-caps, you could hold 80% Tax-Managed Capital Appreciation and 20% Tax-Managed Small-Cap, or 100% Total Stock Market Index. But either way, the tax-managed funds have 0.07% higher expenses than Admiral or ETF shares of the non-tax-managed funds and you aren't likely to make up that 0.07% in lower taxes unless you are in a very high tax bracket. (In addition, holding the two tax-managed funds separately may result in additional costs if you have to rebalance.)
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Bubbagump
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Re: vtclx vs. vti [Tax Managed Cap Appreciation vs. Total St

Post by Bubbagump » Tue Oct 14, 2014 9:38 pm

Unless you are in a very high tax bracket VTI/VTSMX/VTSAX are extremely tax efficient already. Plus, you get the advantage of small cap in those funds. Really, except for TLH reasons or some institutional use I have a hard time thinking of a great use for VTCLX for individuals.

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