It sounds like ETFs are the tax efficient choice by folks responses above. Makes sense to hold them in a taxable account (ie brokerage) over something like an IRA which is growing tax free anyways (where a low cost index fund sounds ideal).It does if you are trying to be even a little aggressive on tax loss harvesting. My opinion is ETFs are far easier for tax loss harvesting unless you are simply sticking to the major market events like the market being down 20%. I also think many underestimate the portability aspects of ETFs and the potential to access tax loss harvesting pairs from different fund families. Nothing wrong with mutual funds, I hold some, but I encourage anyone starting a taxable account to consider ETFs for that account.I hear people bring this up a lot, and while technically true, does it really matter? I mean, would it affect your decision to buy if the price goes up .3% from when you initially decide to make the purchase? The vast majority of us are making automated purchases of index funds according to a fairly set schedule. I don't think price plays any part in the purchase decision. If it does, you are effectively trying to time the market, which seems to be the other big no-no in these here parts.One reason I like ETFs is that I know the price when I buy or sell a market order. For a mutual fund, the price is only determined at 4pm EST, so if you place an order at 1pm, you have no idea what the transaction price will be, but you can use limits
Are folks holding an ETF position earmarked discretionary funds or? Presently I'm in savings mode and holding savings funds in FZDXX and VMFXX (IRA and 401k regularly maxed out). Did not think it made sense to invest any of that in mutual funds or ETFs.
Statistics: Posted by Bayareadoc — Mon Jun 17, 2024 3:52 am — Replies 20 — Views 1898