Currently I have SGOVX in a tax deferred account at Schwab and ARTKX in a taxable account at Schwab. I need to make room in my tax deferred account to increase allocation in an existing tax inefficient fund, consequently, I need to sell SGOVX. I also have MACSX and MAPIX in a tax deferred account, but in smaller (supporting if you will) positions than SGOVX and ARTKX.
In turn, I want to pick up that the international allocation either by adding to ARTKX at Schwab, purchasing another tax efficient international fund at Schwab, or at Vanguard, either with a Vanguard international equity fund or one through Vanguard Brokerage.
I have been pleased with ARTKX, but my initial thought is to pair it with an international index fund, which could be Vanguard Total International Stock Index VTIAX. Domestically, I have approximately 50% of my equity allocation in managed funds and 50% in index funds. While I am pleased to have a 50% allocation to index domestically, I'm not certain about the same formula internationally. I have looked at Vanguard International Growth VWILX and while I like the low ER at 0.36% and the fund has historically been fairly tax efficient, it seems if I am going the managed route, there are better funds in this space. Regarding VTIAX, the notion that it will probably remain tax efficient long term, is comforting.
It appears on M* both ARTKX and VTSMX have similar 1,3, and 5 year tax cost ratios. Ironically, Lipper gives ARTKX a 4 for tax efficiency, while Vanguard Total International Stock Market Index a 3. I also see in M* that both have about 21% potential capital gains exposure.
Some thoughts and recommendations would be appreciated.