VTI and VXUS in Fidelity account?

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Topic Author
Foresight2020
Posts: 41
Joined: Wed Apr 05, 2017 10:15 am

VTI and VXUS in Fidelity account?

Post by Foresight2020 » Tue Feb 11, 2020 9:42 am

Hi everyone,

We buy and hold for the long haul the global equity market through VTI (Vanguard Total Stock Market Index ETF) and VXUS (Vanguard Total International Stock ETF) in our taxable Vanguard brokerage account. We chose these because they seem to be the cheapest, most tax efficient way to do this at Vanguard.

For various reasons, we're considering opening another taxable account at Fidelity. To meet the same buy and hold global equity objective, should we be considering something other than VTI and VXUS for the Fidelity account? I'm not finding cheaper or more tax efficient Fidelity versions of VTI and VXUS. Am I missing something?

Federal bracket: 32%
State: 5.05%
May hit the 15% LT cap gains ceiling this year

Thanks!

trevorshhh
Posts: 75
Joined: Thu Jan 03, 2019 8:40 pm

Re: VTI and VXUS in Fidelity account?

Post by trevorshhh » Tue Feb 11, 2020 9:51 am

There are no fees for ETF trading on either brokerage now, so you can pick any ETF you wish. Fidelity doesn't offer any comparable ETFs themselves, though they encourage using the ones through iShares which was the free trade option before everything was able to be traded for free.

It's also worth noting that you can trade partial shares of ETFs on the Fidelity mobile app.
"Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land." -Ecclesiastes 11:2 NIV

dbr
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Joined: Sun Mar 04, 2007 9:50 am

Re: VTI and VXUS in Fidelity account?

Post by dbr » Tue Feb 11, 2020 9:59 am

You aren't missing anything.

Startled Cat
Posts: 505
Joined: Thu Apr 03, 2008 8:54 pm

Re: VTI and VXUS in Fidelity account?

Post by Startled Cat » Tue Feb 11, 2020 10:05 am

IXUS is extremely similar to VXUS but consistently more tax-efficient.

Topic Author
Foresight2020
Posts: 41
Joined: Wed Apr 05, 2017 10:15 am

Re: VTI and VXUS in Fidelity account?

Post by Foresight2020 » Tue Feb 11, 2020 10:45 am

IXUS is extremely similar to VXUS but consistently more tax-efficient.
Thanks Startled Cat. This is what I was hoping to learn. Does IXUS achieve these higher qualified dividend percentages by holding more of its securities longer than VXUS?

Any reason you can see not to go for IXUS rather than VXUS?

Topic Author
Foresight2020
Posts: 41
Joined: Wed Apr 05, 2017 10:15 am

Re: VTI and VXUS in Fidelity account?

Post by Foresight2020 » Tue Feb 11, 2020 11:00 am

Just found your discussions of this from July 2019, Startled Cat, including this comment:
Finally, my earlier comment about trusting Vanguard more isn't referring to tax efficiency - I was saying I'm holding VXUS *despite* its relative tax inefficiency because I may be holding for a very long time, and I feel more comfortable holding a Vanguard fund for potentially 40-50 years than an iShares fund which is managed for a profit and could end up raising fees or making other investor-unfriendly changes. I've already observed that iShares has been reluctant to lower fees much on their legacy ETFs, prefering to launch new ones with lower expense ratios (look at EEM vs. IEMG). Vanguard's mutual ownership structure gives me some comfort. That said, I've recently moved most of my VXUS holdings to IXUS because I think the tax savings is probably worth it.
These are the considerations I'm weighing...

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1789
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Re: VTI and VXUS in Fidelity account?

Post by 1789 » Tue Feb 11, 2020 11:01 am

You made excellent choices to buy at Fidelity
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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