LordosisParticipantStatus: PhysicianPosts: 1296Joined: 02/11/2019
With my US equities I try to mimmic the total stock market. I have better access to large cap (S&P 500) in my tax deferred accounts and I have thus far been putting only VTSAX in my taxable. I have noticed that my desired AA is tilting away from small caps because of this. I realize this is a minuscule difference and I may not even act on it unless it becomes a bigger issue because I prefer simplicity. But I was wondering if anyone could speak to the advantages or disadvantages of having small caps VSMAX in a taxable account.
“Never let your sense of morals prevent you from doing what is right.”PedsParticipantStatus: PhysicianPosts: 3988Joined: 01/08/2016
a little less tax efficient. good for TLH.
i have s&p in 1 401k, and small cap in another.
you could also add the extended market VEXAX to be even more complete.LordosisParticipantStatus: PhysicianPosts: 1296Joined: 02/11/2019
What makes it less tax efficient? Is it that some stock will fall off the index causing them to be sold? It seems to have a lower dividend rate which could be a benefit. I am more interested in educating myself then finding something actionable.
Yes the extended market could also work.
“Never let your sense of morals prevent you from doing what is right.”jzParticipantStatus: PhysicianPosts: 655Joined: 01/09/2016
Small caps in taxable is excellent. Compared to s&p 500, small caps are a bit more volatile and often pay lower dividends. VSMAX keeps the cap gains embedded, so VSMAX functions as tax efficient as an ETF.
My bias is to use ETFs in taxable and I pay minimal heed to asset placement. I prefer to designate an AA for each account, depending on it’s intended goal duration.TanglerParticipantStatus: PhysicianPosts: 321Joined: 08/23/2018
i like it! Also like VTSMX and vsgax, and vsiax; have used for tax loss harvesting.April 15, 2019 at 12:48 pm MST #206606