Taxes
A collection of 14 posts
Can Active Funds Clear the Tax Hurdle?
Index funds have become most investors’ default investment option for at least a couple of good reasons, including low tax exposure. But that doesn’t mean you should abandon active funds—some managers have delivered index-fund-beating returns even after taxes are accounted for.
Are ETFs More Tax Efficient? No.
ETFs have long been crowned more tax-friendly than mutual funds. That may be true across much of the industry, but not at Vanguard. Compare apples to apples, and there’s no difference from a tax standpoint between a Vanguard Admiral-class index fund and its ETF sibling.
Avoiding Tax Bombs
Ignore a fund's turnover if you're trying to avoid a large capital gains distribution.
Are You Farming Your Portfolio Correctly?
Losses can be profitable … if you know how to “harvest” those losses to maximum effect. Most investors don’t do so correctly, and Vanguard, among others, is pushing an automated strategy to correct for it. I think caution is warranted.
Distribution Season Comes For Non-Vanguard Funds Too
Note: This article contains distribution data for calendar year 2022. Earlier this week I detailed which Vanguard mutual funds are expected to distribute capital gains and when. But in the past, we’ve recommended a few non-Vanguard mutual funds as replacements for Vanguard funds that close to new investors. How