Harvesting Gains with ETFs
Worried about higher taxes? Think about harvesting gains in your ETFs by selling, paying taxes at today's rate and repurchasing your funds.
Jeremy Glaser: Let's talk a little bit about trading tactics using ETFs to help manage your tax bill.
Scott Burns: Right. Normally I think the things people are most commonly familiar with with ETFs is harvesting tax losses and using ETFs to do that effect. If you had a loss in a manager or even another ETF, what you could do is sell the loss in the ETF and buy a similar fund. You can't sell probably the SPDR S&P 500 and buy the iShares S&P 500, but you could presumably sell the SPDR S&P 500 and buy, say, Vanguard Total Stock Market. You'll get a very similar investment experience, right, and you'll be able to harvest your loss.
Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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