Timely Tax Loss Harvesting Question

[savory]

Hi,

I own VEU (VANGUARD FTSE ALL WORLD EX US). I would like to sell and immediately buy a similar ETF that covers similar international markets (and/or meets similar strategy) so I can bank the loss and stay in the market

Does anyone have a recommendation of an ETF that would allow me to execute this plan while meeting the IRS regs?

Thanks

 

[Sunset]

Gosh, many folks are thinking just SELL, and wait.

However, how about VXUS ?

 

[RunningBum]

Gosh, many folks are thinking just SELL, and wait.

However, how about VXUS ?

Others here are saying to stay the course. You can't know whether the market will continue to drop, or recover lost ground. If you need money now, this is the time to spend some of your cash or bonds.

VXUS would seem to be a reasonable alternative.

 

[pb4uski]

Yes, I'd go with VXUS.... I recall swapping the mutual fund versions of VXUS and VEU to sidestep Vanguard's frequent trading restrictions a number of years ago.

 

[savory]

Thanks for you responses. It was very helpful.

I did continue my online search and found this link. Wealthfront published a white paper with their tax- loss harvesting strategy. They list the ETFs they use. I am hoping they have the expertise to have evaluated the IRS tax consequences.

Coincidentally, their primary portfolio recommendation for international is VEA. Their tax loss harvesting suggestion is SCHF. It is a slightly lower cost than VXUS but negligible. I have not completed my research but will decide between those two.

BTW, I have digested the Kool-aid and plan to ride the highs & lows. I am not timing the market as I will be replacing my ETF with a similar but different enough profile. I will follow the Wealthfront approach of switching back to VEA at some point after the 30 day period.

Here is the link if you are interested https://research.wealthfront.com/whitepapers/tax-loss-harvesting/**