Tactical reduction in equity holidings via shorts vs. sales

For investors outside the US. Personal investments, personal finance, investing news and theory.
Sister forums: Canada, Spain (en español)
---------------
Post Reply
Topic Author
aurorion
Posts: 6
Joined: Sun Dec 05, 2021 6:31 am

Tactical reduction in equity holidings via shorts vs. sales

Post by aurorion »

Hello,

Most of my international equity is in VWRA, with a minority in region-specific ETFs (e.g. VUAA, VWCG, etc.) I use an IBKR margin account, and my Net Asset Value is well over $100K. I am planning to cut down my overall equity exposure by the end of this year, from ~60% at present, to around ~40%.

Due to tax reasons, I would ideally prefer to not sell my VWRA holdings, though I plan to sell others since I have wanted to sell them anyway. To reduce exposure further, does it make sense to short other ETFs (e.g. VT, or SPY if I am more bearish on US), while retaining my VWRA holdings?

I am a boring, long-only investor on IBKR, so don't have much idea about shorting on IBKR. How much would it cost for me in fees & charges to keep a short position of $10K in VT or SPY over a 1-year period?
Post Reply