International ETF for taxable acct - questions

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Bklmt2000
Posts: 46
Joined: Sat Mar 26, 2022 3:16 pm

International ETF for taxable acct - questions

Post by Bklmt2000 »

I hold VTIAX (Vanguard Totl Intl Stock Adm Shares) in my 401k, but I'm looking to add an international stock ETF to my taxable/brokerage acct.

I live in Ohio, and Ohio doesn't allow a deduction for or a credit on foreign taxes paid, which is a bit of a bummer. So i'm working under the assumption that I should be looking for something as tax efficient as possible, (not sure if such a thing as a tax-efficient int'l ETF exists).

Any suggestions on what ETF(s) I should look into? and if I buy the ETF equivalent to VTIAX in taxable, am I correct that could pose wash sale issues with what I have in my 401k?

Thanks!
livesoft
Posts: 86080
Joined: Thu Mar 01, 2007 7:00 pm

Re: International ETF for taxable acct - questions

Post by livesoft »

VEA is good. It's tax-loss harvesting partner would be SPDW. Both are reasonably tax-efficient and maybe more so than VTIAX.

Full disclosure: I own both VEA and SPDW as well as VEU and VSS. I do not own VTIAX nor VXUS.
Wiki This signature message sponsored by sscritic: Learn to fish.
User avatar
ruralavalon
Posts: 26353
Joined: Sat Feb 02, 2008 9:29 am
Location: Illinois

Re: International ETF for taxable acct - questions

Post by ruralavalon »

Bklmt2000 wrote: Mon Jun 27, 2022 6:26 pm I hold VTIAX (Vanguard Totl Intl Stock Adm Shares) in my 401k, but I'm looking to add an international stock ETF to my taxable/brokerage acct.

I live in Ohio, and Ohio doesn't allow a deduction for or a credit on foreign taxes paid, which is a bit of a bummer. So i'm working under the assumption that I should be looking for something as tax efficient as possible, (not sure if such a thing as a tax-efficient int'l ETF exists).

Any suggestions on what ETF(s) I should look into? and if I buy the ETF equivalent to VTIAX in taxable, am I correct that could pose wash sale issues with what I have in my 401k?

Thanks!
For high tax-efficiency in your taxable brokerage account consider:
1) Vanguard Total Intl Stock Idx ETF (VXUS); or
2) iShares Core S&P Total U.S. Stock Market ETF (ITOT).

What international funds do you use in your 401k account?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
quietseas
Posts: 901
Joined: Fri Dec 27, 2013 3:43 pm

Re: International ETF for taxable acct - questions

Post by quietseas »

Since you have VTIAX in your 401K, I would use IXUS or VEU in your taxable account. VEA if you don't want emerging markets.
UpperNwGuy
Posts: 9479
Joined: Sun Oct 08, 2017 7:16 pm

Re: International ETF for taxable acct - questions

Post by UpperNwGuy »

IXUS, VEU, VEA, SPDW, IDEV and SCHF would all work. I've owned them all at different times.
trismegistos
Posts: 12
Joined: Wed Jun 22, 2022 9:44 am

Re: International ETF for taxable acct - questions

Post by trismegistos »

VEA is a great one. Canada + developed Europe + developed Asia Pacific. No emerging markets.
Apathizer
Posts: 2507
Joined: Sun Sep 26, 2021 2:56 pm

Re: International ETF for taxable acct - questions

Post by Apathizer »

DFAX. 65% developed ex-US, 35% emerging markets with light-moderate factor slants. Data shows a slant for value and profitability is especially important for both developed and emerging ex-US markets.

While I consider myself a booglehead, a low-turnover factor-slanted portfolio is more diverse and has historically higher risk-adjusted returns than a cap weight index portfolio.
ROTH: 50% AVGE, 10% DFAX, 40% BNDW. Taxable: 50% BNDW, 40% AVGE, 10% DFAX.
Post Reply