Small Cap Value

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Mario2222
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Small Cap Value

Post by Mario2222 »

Any recommendations for a good tax efficient small cap value index fund to hold in a taxable account? Thanks.
averagedude
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Re: Small Cap Value

Post by averagedude »

VBR Vanguard small cap value index fund.
Most value or growth funds tend to have higher turnover rates due to the fund manager's desire to have less tracking error to the index they are following.
theorist
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Re: Small Cap Value

Post by theorist »

If you prefer mutual funds, I hold VSIAX and I’ve been happy with it.
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BroIceCream
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Re: Small Cap Value

Post by BroIceCream »

Mario2222 wrote: Sun Feb 16, 2020 11:18 pm Any recommendations for a good tax efficient small cap value index fund to hold in a taxable account? Thanks.
For ETF: I use IJS. Also SLYV, VIOV
For MF: VSIAX, FISVX
annu
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Re: Small Cap Value

Post by annu »

I have vtmsx, https://investor.vanguard.com/mutual-fu ... file/VTMSX

I like the tax managed side of it, also it tracks s&p 600, which I feel has more small cap, compared to its csrp cousin
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Taylor Larimore
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Re: Small Cap Value

Post by Taylor Larimore »

Mario2222 wrote: Sun Feb 16, 2020 11:18 pm Any recommendations for a good tax efficient small cap value index fund to hold in a taxable account? Thanks.
Mario2222:

Vanguard Total U.S. Stock Market Index Fund (VTSMX) holds the market weight of small-cap value stocks and is very tax-efficient.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "My preferred index fund happens to be the total stock market which includes large, medium, and small stocks."
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ruralavalon
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Re: Small Cap Value

Post by ruralavalon »

Mario2222 wrote: Sun Feb 16, 2020 11:18 pm Any recommendations for a good tax efficient small cap value index fund to hold in a taxable account? Thanks.
Which fund firm or brokerage is your taxable account with?

Do you prefer a traditional mutual fund or an exchange traded fund (ETF)?
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abuss368
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Re: Small Cap Value

Post by abuss368 »

Mario2222 wrote: Sun Feb 16, 2020 11:18 pm Any recommendations for a good tax efficient small cap value index fund to hold in a taxable account? Thanks.
I would consider a Total Stock for US which would hold the market weight in small cap stocks. If you would like international, consider Total International which would also hold the market weight of small cap international stocks.
John C. Bogle: “Simplicity is the master key to financial success."
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BroIceCream
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Re: Small Cap Value

Post by BroIceCream »

abuss368 wrote: Mon Feb 17, 2020 2:50 pm
Mario2222 wrote: Sun Feb 16, 2020 11:18 pm Any recommendations for a good tax efficient small cap value index fund to hold in a taxable account? Thanks.
I would consider a Total Stock for US which would hold the market weight in small cap stocks. If you would like international, consider Total International which would also hold the market weight of small cap international stocks.
while it is true that a "Total" fund would include "small cap" stocks... the relative position is very small, and much overweighted due to market cap to large-cap companies. If you want representation to small-cap, you won't find a meaningful position in a TSM fund enough to move the needle. You would be better adding a fund which emphasizes the Small or Small-value.
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andromeda2k12
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Re: Small Cap Value

Post by andromeda2k12 »

IJS is the consensus here for SCV in taxable accounts. Apparently it has the best tax efficiency despite the slightly higher ER
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Mario2222
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Re: Small Cap Value

Post by Mario2222 »

My taxable account is at vanguard.
atdharris
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Re: Small Cap Value

Post by atdharris »

abuss368 wrote: Mon Feb 17, 2020 2:50 pm
Mario2222 wrote: Sun Feb 16, 2020 11:18 pm Any recommendations for a good tax efficient small cap value index fund to hold in a taxable account? Thanks.
I would consider a Total Stock for US which would hold the market weight in small cap stocks. If you would like international, consider Total International which would also hold the market weight of small cap international stocks.
I agree as well. It's tough to know if small caps will outperform the market as they have in the past. I tend to shy away from trying to pick winners in certain sectors or market cap and just go with a total market weight.
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ruralavalon
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Re: Small Cap Value

Post by ruralavalon »

Mario2222 wrote: Sun Feb 16, 2020 11:18 pm Any recommendations for a good tax efficient small cap value index fund to hold in a taxable account? Thanks.
Mario2222 wrote: Tue Feb 18, 2020 9:57 am My taxable account is at vanguard.
I use Vanguard Small-cap Value Index Fund (VSIAX), the ETF version is Vanguard Small-Cap Value ETF (VBR).

The other possibilities are Vanguard S&P Small-Cap 600 Value ETF (VIOV) or iShares S&P Small-Cap 600 Value ETF (IJS).

See the spreadsheet in "2017 relative tax-efficiency "
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snailderby
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Re: Small Cap Value

Post by snailderby »

VBR is a low-cost, mid- to small-cap value fund. IVOV/SLYV/IJS is also worth considering, if you want a stronger size tilt and a profitability screen to go with your value tilt.
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