LOL,
I think that there are a couple of possible advantages of the tax managed funds over the regular index funds:
1) A perusing of the
SEC filings for the tax managed funds shows that they have never distributed a capital gain. For example,
VTGIX,
VMCAX, and
VTMFX distributed no capital gains since 1994 [inception], while
VFINX and
VTSMX distributed capital gains from 1994 until around 2000-2001, but havent' since.
2) In the small cap arena, in addition to not distributing any capital gains since inception [1999], all the dividends distributed by
VTMSX are qualified dividends. Contrast this with
NAESX and
VIVSX whose dividends are only b/w 60-70% qualifying. See Barry Barnitz's
Financial page for the docs.
.....
- Alec