Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

  • bee February 2017
  • Sven February 2017
Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

M*: Should You Bother With A 'Tax-Managed' Fund?

FYI: Tax-managed funds don't guarantee tax efficiency, but they can be a good choice for taxable investors.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=793734

Comments

  • Some funds that use a tax managed strategy might also include index funds and muni funds. Funds that combine these two strategy (50%- S&P 500 index / LC Blend and 50% -tax free Munis) include USBLX (5*) , and VTMFX (5*/gold). USBLX holds 501 stocks and VTMFX holds 880 stocks. VTMFX has a very low (.11 ER). Comparing these two funds VTMFX gets the nod:

    image
  • Yes. After 15 year period, the annual return of VTMFX is 1.13% higher than USBLX due to its lower ER. Also the tax cost ratio is better (lower values).
Sign In or Register to comment.