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!
International ETF for taxable acct - questions
Re: International ETF for taxable acct - questions
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.
Full disclosure: I own both VEA and SPDW as well as VEU and VSS. I do not own VTIAX nor VXUS.
- ruralavalon
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Re: International ETF for taxable acct - questions
For high tax-efficiency in your taxable brokerage account consider: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!
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
Re: International ETF for taxable acct - questions
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.
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Re: International ETF for taxable acct - questions
IXUS, VEU, VEA, SPDW, IDEV and SCHF would all work. I've owned them all at different times.
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Re: International ETF for taxable acct - questions
VEA is a great one. Canada + developed Europe + developed Asia Pacific. No emerging markets.
Re: International ETF for taxable acct - questions
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.
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.