Join Early Retirement Today
Thread Tools Search this Thread Display Modes
ETFs that are "close" but not "wash sale close"
Old 11-18-2007, 10:42 AM   #1
Recycles dryer sheets
Join Date: Jun 2007
Posts: 372
ETFs that are "close" but not "wash sale close"

Well, we're getting to the time of year when some of us who have been DCA'ing into ETFs have gotten burned by the market correction of the last couple of months. Its time to do some tax loss harvesting...and investing in closely equivalent securities, but with an eye to avoiding wash-sale rules.

Any suggestions on locating alternate ETFs which one could switch some current holdings into, but not close enough to get in trouble with respect to the wash sale rules...I know that SPY <--> IVV won't fly (as one example) but perhaps an S&P midcap fund would be OK? I also need exchange candidates for US small cap and microcap ETFs.

Does anybody know the exact rules on selecting equivalents? I am fairly sure that owning different ETFs that own the same underlying index is not a differing investment, but how different do they have to be? R^2 test? % holdings test?

Of course given how the market's been doing lately, I'm probably going to be best off spending 31 days in cash!
FinanceGeek is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-18-2007, 11:08 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,234
SPY <-> VTI, IYY, or VV will work.
I think you can exchange the microcap ETFs with impunity since they hold very different sets of stocks.

Some would argue that even S&P500 etf's can be exchanged because they have different expense ratios and probably do not hold all 500 issues and certainly not in the same proportions. But I see no reason to be the IRS test case.
Look at for more help. The term "substantially identical" is open to debate and has not been tested in court for these ETFs. See wash sales at Fairmark Press Tax Guide for Investors
LOL! is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
"Gut feel" versus "evidence-based" medicine Buckeye Health and Early Retirement 10 11-08-2007 11:21 AM
Why no "ETF of ETFs" yet? Olav23 FIRE and Money 16 03-24-2007 09:22 AM
My "Core Plus" Strategy - Feedback on the "Plus" part? milmoose Young Dreamers 24 11-01-2006 10:41 AM
Anyone notice "Osama" sounds like "Obama" ? Mr._johngalt Other topics 50 10-29-2006 06:41 AM
Book reports: "Blink" & "Tipping Point" Nords Other topics 2 12-04-2005 05:15 PM

» Quick Links

All times are GMT -6. The time now is 12:51 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.