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For taxable Accounts: Looking for Funds with good return after tax.
The total stock market funds are generally tax efficient.ETFs are often tax efficient Vanguard has tax managed funds. I like Tax manged capital appreciation . Owned it 20 years with NO capital gain distributions It invests in roughly the largest 10000 growth stocks (so no Exxon for example
It tries to track the Russell 1000 while reducing taxes by harvesting losses, keeping turnover low, and incorporating a bias away from high dividend stocks. That bias doesn't eliminate dividend paying stocks so much as affect their weighting.
You can see this by comparing the fund's top ten holdings (on the Vanguard fund page) with the top ten stocks in the Russell 1000 index. The fund holds the top nine stocks in the index, and has added Google (as its 4th largest position) to round out its ten largest holdings. Google pays no dividends (yet).
Jerry Vanguard tax managed capital appreciation is a great fund but it is a closed fund.I have VTMSX which is a tax managed small cap but it is no better than Vanguard small cap index fund. Do you have any other tax efficient funds that you can recommend ? prinx
Vanguard shows that its tax managed Capital Appreciation fund is open, with a $10K min. That's because these are Admiral shares; the fund switched from offering Investor shares to offering just Admiral shares in 2001.
Vanguard generally does not offer Admiral class shares through brokerages. Perhaps that's where you're looking?
Comments
It tries to track the Russell 1000 while reducing taxes by harvesting losses, keeping turnover low, and incorporating a bias away from high dividend stocks. That bias doesn't eliminate dividend paying stocks so much as affect their weighting.
You can see this by comparing the fund's top ten holdings (on the Vanguard fund page) with the top ten stocks in the Russell 1000 index. The fund holds the top nine stocks in the index, and has added Google (as its 4th largest position) to round out its ten largest holdings. Google pays no dividends (yet).
Vanguard tax managed capital appreciation is a great fund but it is a closed fund.I have VTMSX which is a tax managed small cap but it is no better than Vanguard small cap index fund. Do you have any other tax efficient funds that you can recommend ?
prinx
Vanguard generally does not offer Admiral class shares through brokerages. Perhaps that's where you're looking?
Regards,
Ted
http://investorplace.com/2015/03/best-tax-efficient-vanguard-funds/print