My decisions were driven by the fact that I'd only do this as part of a tax loss harvesting maneuver. I had a MASSIVE unrealized loss the week before Christmas in 2018. I was not optimizing future fund tax efficiency, I was trying to swap out of if I remember right VV but within 30 days of a previous TLH with VTI to realize a claimable loss on the current year taxes. (I had gone around at least 3-4 times in 2018 as the market eroded that year.)Any thoughts on why you chose VB (Small cap when the tax drag is 0.42% versus VBK when the tax drag is only 0.17%I have held 100% of Large Growth (VUG) in taxable and 100% of small (VB) in taxable for the past 6 years. VTV/VVIAX in Traditional and Roth IRAs. The tax benefit has been immense, but I have run out of places to stash VTV in my IRA accounts at this time and as I have recently begun to decumulate, I am spending VUG before my ideal time period (when I am dead) in order to maintain a reasonable MktCap balanced Asset Allocation.
Are you also looking at gross yield% as well?
Secondarily, I keep our taxable brokerage at 99.97% equities, and keep all bonds in Traditional IRA/401K. This meant I have less room for equities in the IRA. Frankly could not have made room for VBR in the IRA accounts, I don't even have enough room for VTV anymore.
Everyone's situation is unique, if you are buying every two weeks, it may make more sense to split small cap.
Statistics: Posted by retiringwhen — Wed Dec 04, 2024 6:25 am