Optimal position to move money between assets?

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Itogliano
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Joined: Thu Jan 06, 2022 3:48 pm

Optimal position to move money between assets?

Post by Itogliano »

I have some money in SPY and SPYG. Both positions are currently down. If I want to instead have the money in an equivalent Vanguard ETF with a lower E/R (so sell and them immediately buy into Vanguard), does it matter if your position is currently positive or negative? This is in a Roth account so I know there are no tax implications but, since I'm in it for the long haul, would it be advantageous to wait until they inevitably recover (either to my original buy in price or higher) and make the change then rather than doing it now? I imagine as long as the money goes into the equivalent fund it would be a lateral move without any risk of selling one low and buying the other high.
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Wiggums
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Re: Optimal position to move money between assets?

Post by Wiggums »

I think you are asking if it makes sense to swap spy (s&p 500) with vanguard equivalent ETF VOO. VOO has a lower ER which is a benefit. I would not be crazy about taking a loss without the potential tax benefit, unless you hate SPY — which you don’t
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delamer
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Re: Optimal position to move money between assets?

Post by delamer »

If the Vanguard fund is equivalent, isn’t it also “down” too?
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Topic Author
Itogliano
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Re: Optimal position to move money between assets?

Post by Itogliano »

delamer wrote: Fri Jan 14, 2022 1:04 pm If the Vanguard fund is equivalent, isn’t it also “down” too?
Near identical (https://etfdb.com/tool/etf-comparison/S ... erformance), which is why I think it would just be a lateral move. Wiggums is right that it would technically be selling at a loss, but I view it, in a practical sense, that it kind of isn't. Unless I'm wrong, which is why I posted and would love to be corrected.
delamer
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Re: Optimal position to move money between assets?

Post by delamer »

Itogliano wrote: Fri Jan 14, 2022 1:10 pm
delamer wrote: Fri Jan 14, 2022 1:04 pm If the Vanguard fund is equivalent, isn’t it also “down” too?
Near identical (https://etfdb.com/tool/etf-comparison/S ... erformance), which is why I think it would just be a lateral move. Wiggums is right that it would technically be selling at a loss, but I view it, in a practical sense, that it kind of isn't. Unless I'm wrong, which is why I posted and would love to be corrected.
If they are near identical, then both funds would be down by about the same amount for whatever period you are looking at. So you are selling low(er) and buying low(er).
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. | | Alexandre Dumas, fils
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