Where to put International ETF

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Topic Author
owenmia
Posts: 114
Joined: Mon Jun 24, 2019 10:19 am

Where to put International ETF

Post by owenmia » Thu Jul 18, 2019 9:39 am

I am going to sell VOO and buy VXUS with the proceeds to add 20% of international to my portfolio.

I have VOO in a traditional IRA and a regular investment account. Which one should I conduct this transaction in?

I will create a capital gain of I think around $500. If I do the transaction.

edge
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Location: NY

Re: Where to put International ETF

Post by edge » Thu Jul 18, 2019 10:11 am

I put international stocks (like total international) in taxable before I put total us stock due to FTC.

ohai
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Re: Where to put International ETF

Post by ohai » Thu Jul 18, 2019 10:18 am

Is this a question about tax efficiency? If so, most people will tell you it's better to do it in your tax deferred account to avoid realizing a capital gain. Also, ex-US stocks have a slightly higher dividend yield than US stocks. So, maybe this matters if you don't want to pay the dividend tax.

Topic Author
owenmia
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Re: Where to put International ETF

Post by owenmia » Thu Jul 18, 2019 10:29 am

Yes, that's what I meant. Thank you!
:sharebeer

lostdog
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Re: Where to put International ETF

Post by lostdog » Thu Jul 18, 2019 10:32 am

Taxable account because you can claim the foreign tax credit. In some years the international index can be more tax efficient than the U.S. index or vice versa. It's a wash. Taxable is a good one.
VT/VTWAX+BNDW

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ruralavalon
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Re: Where to put International ETF

Post by ruralavalon » Thu Jul 18, 2019 11:08 am

owenmia wrote:
Thu Jul 18, 2019 9:39 am
I am going to sell VOO and buy VXUS with the proceeds to add 20% of international to my portfolio.

I have VOO in a traditional IRA and a regular investment account. Which one should I conduct this transaction in?

I will create a capital gain of I think around $500. If I do the transaction.

It can be important to coordinate investments among all accounts.

I suggest using your traditional IRA primarily for a bond allocation. Your other post, "Portfolio question".

Therefore I suggest placing your international stock allocation in the taxable brokerage account. Vanguard Total International Stock ETF (VXUS) is a good choice. The fund is very tax-efficient.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Topic Author
owenmia
Posts: 114
Joined: Mon Jun 24, 2019 10:19 am

Re: Where to put International ETF

Post by owenmia » Thu Jul 18, 2019 12:05 pm

Ok, thank you all for your input!

m@ver1ck
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Re: Where to put International ETF

Post by m@ver1ck » Thu Jul 18, 2019 12:09 pm

Probably best to put it into taxable - tax loss harvesting seems more likely with international. :-)

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