Developed Markets Index Fund has lower QDI

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minesweep
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Developed Markets Index Fund has lower QDI

Post by minesweep »

The 100% Qualified Dividends that Vanguard's Tax Managed International Fund provided me (from 2002-2013) is no more. The merger of TMI with the Developed Markets Index Fund last year has reduced the QDI to 78.7%. So for 2014 tax purposes I have an additional $1,979 of income that will taxed at the 25% rate (instead of the earlier years tax advantaged 15% rate). :(

Mike
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livesoft
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Re: Developed Markets Index Fund has lower QDI

Post by livesoft »

Yes, VEA was the least tax-efficient fund that I owned in 2014 in taxable. Fortunately, I was able to tax-loss harvest it and use FSGDX in my 401(k) instead.
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stlutz
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Re: Developed Markets Index Fund has lower QDI

Post by stlutz »

By comparison, iShares IEFA was 91.52%. And it includes smallcaps as well, unlike VEA.

I was going to look up Schwab's SCHF as well, but they seem to have removed any information about their ETFs from their website, which is strange.
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in_reality
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Re: Developed Markets Index Fund has lower QDI

Post by in_reality »

stlutz wrote:By comparison, iShares IEFA was 91.52%. And it includes smallcaps as well, unlike VEA.

I was going to look up Schwab's SCHF as well, but they seem to have removed any information about their ETFs from their website, which is strange.
2013 SCHF QDI was 85.91

Not sure when they post 2014

https://www.csimfunds.com/public/csim/h ... commentary
Last edited by in_reality on Wed Feb 11, 2015 5:51 am, edited 1 time in total.
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indexfundfan
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Re: Developed Markets Index Fund has lower QDI

Post by indexfundfan »

I stopped adding to international funds (VEA,VEU,VWO) in the taxable account in 2012 when I noticed that the dividend yields are in general much higher than domestic equity. Now I allocate international funds to tax advantaged accounts and leave the taxable account for domestic equity.
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Sammy_M
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Re: Developed Markets Index Fund has lower QDI

Post by Sammy_M »

indexfundfan wrote:I stopped adding to international funds (VEA,VEU,VWO) in the taxable account in 2012 when I noticed that the dividend yields are in general much higher than domestic equity. Now I allocate international funds to tax advantaged accounts and leave the taxable account for domestic equity.
Same here, but I'm using taxable for fixed income (CDs and I-Bonds)
richard
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Re: Developed Markets Index Fund has lower QDI

Post by richard »

I continue not to understand how Vanguard could have changed such a fundamental attribute of a fund (tax management) without the approval of holders. We invested in TMI precisely for the tax management and now have a fund with a higher yield and lower QDI without any corresponding benefit.
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