I would like to know the tax efficient vanguard funds & etfs in order.

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looking
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I would like to know the tax efficient vanguard funds & etfs in order.

Post by looking » Wed Apr 13, 2016 1:58 pm

Hello everyone

I would like to know the tax efficient vanguard funds & etfs in order.

Thank you

kenner
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by kenner » Wed Apr 13, 2016 2:08 pm

looking wrote:Hello everyone

I would like to know the tax efficient vanguard funds & etfs in order.

Thank you


Depends on the exact tax situation of the investor. Can you post details?

The Wizard
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by The Wizard » Wed Apr 13, 2016 2:08 pm

looking wrote:Hello everyone

I would like to know the tax efficient vanguard funds & etfs in order.

Thank you

In order? Alphabetical?
Tax efficiency in their stock funds is mainly a matter of holding a broad enough index of stocks that no Capital Gains Distribution ever needs to be paid.
So total stock market, VTSMX/VTSAX wins that race...
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mptfan
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by mptfan » Wed Apr 13, 2016 2:13 pm

The Wizard wrote:
looking wrote:Hello everyone

I would like to know the tax efficient vanguard funds & etfs in order.

Thank you

In order? Alphabetical?

Maybe chronological?
I eat risk for breakfast. :)

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LAlearning
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by LAlearning » Wed Apr 13, 2016 2:15 pm

did you "look" them up..... :wink:
I know nothing!

FillorKill
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by FillorKill » Wed Apr 13, 2016 2:22 pm

Here's everything you would likely want to know tax-wise for every share class of every VG fund for 2015. Turning this into what you would like will take more effort than I have time for but it's a start.

https://advisors.vanguard.com/iwe/pdf/2 ... ayout.xlsx [Primary layout]
https://advisors.vanguard.com/iwe/pdf/2 ... ayout.xlsx [Secondary layout]

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czeckers
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by czeckers » Wed Apr 13, 2016 4:58 pm

Morningstar also has tax efficiency information.
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triceratop
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by triceratop » Wed Apr 13, 2016 5:26 pm

It is impossible to state this in any generality. Some work has been done to compute trailing years' tax efficiency for many funds, in This Thread. It should be relatively straightforward to adjust the spreadsheet for your particular situation as needed.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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patrick013
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by patrick013 » Wed Apr 13, 2016 5:31 pm

Depending on what you can afford, size of portfolio,
wages during accumulation, dollar withdrawals during
retirement, there are 3 choices to the basic idea and what
is future tax expense. Here's an idea.

Married filing jointly, all annual distributions from retirement
account(s) from stock or bond capital gains invested in a
specific retirement account. Other income will affect the
result.

Traditional IRA - $40,000 distribution, $1,991 Fed tax

Taxable Account - $40,000 distribution, $0 Fed tax

Roth IRA - $40,000 distribution, $0 Fed tax


Here's a current outline:

Stock Market Index - taxable and/or Roth and/or tax-deferred

Int'l Stock Index - taxable and/or Roth and/or tax-deferred

Bond Market Index - tax-deferred, and/or Roth

Int'l Bond Index - tax-deferred and/or Roth

TIPS - tax-deferred and/or Roth

REIT Index - tax-deferred and/or Roth
age in bonds, buy-and-hold, 10 year business cycle

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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by Grt2bOutdoors » Wed Apr 13, 2016 5:47 pm

Taxable accounts - Total Stock Market Index

Total International Stock Index

FTSE All World-ex US

Intermediate Tax-Exempt

Limited Term Tax Exempt

Short Term Tax-Exempt
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CABob
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by CABob » Wed Apr 13, 2016 6:40 pm

From the Wiki https://www.bogleheads.org/wiki/Tax-eff ... _placement

Approximate Tax Efficiency Ranking for Major Asset Classes

Efficient
Low-yield money market, cash, short-term bond funds
Tax-managed stock funds
Large-cap and total-market stock index funds
Balanced index funds
Small-cap or mid-cap index funds
Value index funds

Moderately inefficient
Moderate-yield money market, bond funds
Total-market bond funds
Active stock funds

Very inefficient
Real estate or REIT funds
High-turnover active funds
High-yield corporate bonds

Notes: Tax exempt municipal bonds and Vanguard tax-managed funds are only suitable for taxable accounts.
While this page considers tax efficient fund placement, note that savings bonds (series EE and series I)[note 2] are only available in taxable accounts.


From this you should be able to put most any Vanguard fund in this list to determine where it fits.
Bob

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patrick013
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by patrick013 » Wed Apr 13, 2016 6:57 pm

Sometimes it matters and sometimes it matters less.
What does this mean to an overall portfolio ? and I
quote. Actually I like all of my high growth investments
in a Roth as well.


Per Principles of tax-efficient fund placement - place high growth
stock funds, Tax-efficient fund placement - Bogleheads you might prefer
to put stock funds in a Roth IRA, but if you have a 401k with low-expense
stock funds and high-expense and/or inferior choices of bond funds, then
you might be better off putting bonds in the Roth IRA to have lower
expenses in the 401k.
age in bonds, buy-and-hold, 10 year business cycle

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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by LadyGeek » Wed Apr 13, 2016 8:08 pm

Hi Looking,

Can you provide a bit more detail? Why do you want the funds and ETFs in order?
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Re: I would like to know the tax efficient vanguard funds & etfs in order.

Post by livesoft » Wed Apr 13, 2016 8:14 pm

I suppose a ranked list for 5 different tax brackets using data from 2015 and the spreadsheet from triceratop could be created. I could do it if you paid me about $200,000 if you like. It would be a lot of work.
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