Menu

vsmax in taxable

Home General Investing vsmax in taxable

  • Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1296
    Joined: 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.

    Thanks everyone!

    “Never let your sense of morals prevent you from doing what is right.”

    #206029 Reply
    Liked by SLC OB
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3988
    Joined: 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.

    #206032 Reply
    Liked by SLC OB, Lordosis
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1296
    Joined: 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.”

    #206038 Reply
    Liked by SLC OB
    Avatar jz 
    Participant
    Status: Physician
    Posts: 655
    Joined: 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.

    #206053 Reply
    Liked by Lordosis
    Avatar Tangler 
    Participant
    Status: Physician
    Posts: 321
    Joined: 08/23/2018

    i like it! Also like VTSMX and vsgax, and vsiax; have used for tax loss harvesting.

    #206606 Reply
    Avatar JWeb 
    Participant
    Status: Physician
    Posts: 115
    Joined: 02/21/2017

    What’s not to like about a fund that has “MAX” in the ticker?!

    #206823 Reply

Reply To: vsmax in taxable

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear