Wash Sale Question

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Vanguard Fan 1367
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Joined: Wed Feb 08, 2017 3:09 pm

Wash Sale Question

Post by Vanguard Fan 1367 » Fri Mar 27, 2020 1:14 am

Yesterday I read of mistakes made with wash sales. I have a loss with my Vanguard High Dividend Yield ETF, VYM, and would like to sell it and immediately buy the same dollar amount of Vanguard's Total Stock Market ETF, VTI. Am I correct in thinking that is ok to do, that I won't get in trouble with the wash sale rules?

Thanks for the time in helping with your response.

annu
Posts: 374
Joined: Mon Nov 04, 2019 7:55 pm

Re: Wash Sale Question

Post by annu » Fri Mar 27, 2020 1:50 am

VYM: Seeks to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields. 399 stocks
VTI:Seeks to track the performance of the CRSP US Total Market Index. >3500 stocks

Seem to be different enough, that no wash sale. If you search in personal investment section, you will find a lot more posts. I have seen folks even doing VTI->VOO, which have llot more overlap, what you have seems more different

Topic Author
Vanguard Fan 1367
Posts: 1321
Joined: Wed Feb 08, 2017 3:09 pm

Re: Wash Sale Question

Post by Vanguard Fan 1367 » Fri Mar 27, 2020 2:06 am

annu wrote:
Fri Mar 27, 2020 1:50 am
VYM: Seeks to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields. 399 stocks
VTI:Seeks to track the performance of the CRSP US Total Market Index. >3500 stocks

Seem to be different enough, that no wash sale. If you search in personal investment section, you will find a lot more posts. I have seen folks even doing VTI->VOO, which have llot more overlap, what you have seems more different
Thanks for the help. I appreciate your time and I believe you are correct.

rkhusky
Posts: 8667
Joined: Thu Aug 18, 2011 8:09 pm

Re: Wash Sale Question

Post by rkhusky » Fri Mar 27, 2020 8:02 am

Vanguard Fan 1367 wrote:
Fri Mar 27, 2020 1:14 am
Yesterday I read of mistakes made with wash sales. I have a loss with my Vanguard High Dividend Yield ETF, VYM, and would like to sell it and immediately buy the same dollar amount of Vanguard's Total Stock Market ETF, VTI. Am I correct in thinking that is ok to do, that I won't get in trouble with the wash sale rules?

Thanks for the time in helping with your response.
Are you selling all shares of VYM? If not, were there any purchases within the last 30 days, including reinvested dividends? If so, are you selling all those shares?

Have you sold any VTI for a loss in the last 30 days?

Topic Author
Vanguard Fan 1367
Posts: 1321
Joined: Wed Feb 08, 2017 3:09 pm

Re: Wash Sale Question

Post by Vanguard Fan 1367 » Fri Mar 27, 2020 11:17 am

rkhusky wrote:
Fri Mar 27, 2020 8:02 am
Vanguard Fan 1367 wrote:
Fri Mar 27, 2020 1:14 am
Yesterday I read of mistakes made with wash sales. I have a loss with my Vanguard High Dividend Yield ETF, VYM, and would like to sell it and immediately buy the same dollar amount of Vanguard's Total Stock Market ETF, VTI. Am I correct in thinking that is ok to do, that I won't get in trouble with the wash sale rules?

Thanks for the time in helping with your response.
Are you selling all shares of VYM? If not, were there any purchases within the last 30 days, including reinvested dividends? If so, are you selling all those shares?

Have you sold any VTI for a loss in the last 30 days?
All shares of VYM are now sold. I was not reinvesting the dividends and haven't purchased any VYM in the last 30 days. I did not own VTI until I bought it this morning.

rkhusky
Posts: 8667
Joined: Thu Aug 18, 2011 8:09 pm

Re: Wash Sale Question

Post by rkhusky » Fri Mar 27, 2020 11:34 am

All is good then. There are a number of ways to cause a wash sale. You have to check off all of them before you are in the clear.

Topic Author
Vanguard Fan 1367
Posts: 1321
Joined: Wed Feb 08, 2017 3:09 pm

Re: Wash Sale Question

Post by Vanguard Fan 1367 » Fri Mar 27, 2020 12:29 pm

rkhusky wrote:
Fri Mar 27, 2020 11:34 am
All is good then. There are a number of ways to cause a wash sale. You have to check off all of them before you are in the clear.
Thanks for the help! I was telling my wife that it is interesting that the tax laws are such that it really pays to spend time on Bogleheads.org.
I have a friend who hates to talk about or even think about financial things. He definitely pays the price for not wanting to learn about finances.

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