VTWAX in taxable- tax loss harvesting

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Posts: 24
Joined: Wed Jan 30, 2019 6:54 pm

VTWAX in taxable- tax loss harvesting

Post by hlinee » Sun Feb 10, 2019 10:35 am

I was thinking of purchasing VTWAX only in my taxable account to make things simple. I would contribute to it monthly automatically and make it hands off. This sounds very appealing to me.

On the other hand, I could purchase a mix of VTSAX and VTIAX in my taxable account. The primary advantage of this in my opinion is the greater ease of tax loss harvesting from having two different asset classes and also a large number of tax loss harvesting partners to choose from.

I am very torn as while I am drawn to the first approach, I feel like the TLH opportunities are much fewer.

Posts: 68617
Joined: Thu Mar 01, 2007 8:00 pm

Re: VTWAX in taxable- tax loss harvesting

Post by livesoft » Sun Feb 10, 2019 10:36 am

Only you know what works for you. You could also have all 3 if you wanted.
Wiki This signature message sponsored by sscritic: Learn to fish.

User avatar
Posts: 175
Joined: Sat Mar 15, 2014 10:29 pm
Location: South Cackalacky

Re: VTWAX in taxable- tax loss harvesting

Post by Crushtheturtle » Sun Feb 10, 2019 10:47 am

Other advantages of holding the funds separately:

- cheaper combined expense ratio
- greater number of companies
- (greater number of smaller companies=greater size factor exposure?)
- ability to target an int'l weighting other than global cap weight
- compatibility with a spreadsheet that tracks total portfolio. I.e. You likely have other accounts in your portfolio without access to a Total World stock fund, therefore you need to track the relative size between US and ex-US anyway.
Money comes in, money goes out- you can't explain that

Posts: 2054
Joined: Thu Feb 04, 2016 2:15 pm

Re: VTWAX in taxable- tax loss harvesting

Post by lostdog » Mon Feb 11, 2019 8:50 am

You can tax loss harvest with the ACWI ishares etf. It's a no commision trade at Vanguard. It's an all world fund from BlackRock. It's a bit more expensive but you'll be using to to TLH anyway.

VTSAX and VTIAX seperate is about .03% cheaper. Based on how much you have that difference is negligible. Having a tiny bit more small caps with the two separate funds is negligible.

How much do you value simplicity and peace of mind?
Total World Stock and Total World Bond. The simple two fund diversified portfolio. "Simplicity is the master key to financial success."

Post Reply