TLH Partners for ESGV and VSGX?

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pancake123
Posts: 4
Joined: Thu Aug 01, 2019 9:10 pm

TLH Partners for ESGV and VSGX?

Post by pancake123 » Sun Mar 22, 2020 12:40 pm

Hi all,

Hope everyone's staying safe during this time. My portfolio currently consists of ESGV and VSGX, two ESG-related funds, since they serve as good proxies for total / int'l stock market while accounting for my personal religious goals (no sin stocks such as tobacco/gambling, no weapons, etc).

With the current market conditions, I was looking into TLH but am unsure on what funds would be similar enough, but not be considered a wash sale. Would anyone please be able to chime in any suggestions?

Thank you all! :happy

MnD
Posts: 4578
Joined: Mon Jan 14, 2008 12:41 pm

Re: TLH Partners for ESGV and VSGX?

Post by MnD » Tue Mar 24, 2020 9:47 am

Tough one. I consider ESGV and VSGX to be new best in class products so finding good TLH partners can be tough.
Similiar situation for someone invested in VG Total World Stock (VT)

Consider iShares:
XSUS for US ESG
A mix of XSEA and and XSEM to approximate VSGX

At first glance I don't consider these as good (more funds required, higher expenses, some gaps in indexing on the international side (Canada? small caps). Maybe liquidty issues - higher spreads? Consider in the event of a sharp market runup after TLH you could be stuck with these forever or face realizing large taxable gains to get back to ESGV and VSGX.

My daughter is all in ESGV, VSGX and cash equivalents for her 3-fund portfolio and I advised her to do nothing.

Or....................................

Do you have bonds or cash in retirement accounts equal or greater in value to ESGV and VSGX in taxable?
You could buy XSUS, XSEA and XSEM in retirement accounts and simultaneously sell ESGV and VSGX in taxable.
Then after 30 days reverse everything back to the way it was.
70/30 AA for life, Global market cap equity. Rebalance if fixed income <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.

Topic Author
pancake123
Posts: 4
Joined: Thu Aug 01, 2019 9:10 pm

Re: TLH Partners for ESGV and VSGX?

Post by pancake123 » Fri Mar 27, 2020 12:06 am

Thank you! That is helpful :D

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oneleaf
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Re: TLH Partners for ESGV and VSGX?

Post by oneleaf » Fri Mar 27, 2020 12:50 am

Isn't XSUS and the other recommendations Canadian ETF's?

It seems the US-based ESG options would be:

For US: IShares ESGU
For Ex-US: IShares ESGD and ESGE in an 80/20 ratio

I'd be perfectly happy with those 3 iShares ETF's as replacements for ESGV and VSGX. VSGX has both developed and emerging, hence why you'd need two ETF's to mimic it.

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