Patricia Oey: Vanguard Tax-Managed Balanced is a cheap, tax-efficient, set-it-and-leave-it fund and carries a Morningstar Analyst Rating of Gold.
This 50% equity-50% bond fund is comprised of Gold-rated equity fund Vanguard Tax Managed Capital Appreciation and Silver-rated muni fund Vanguard Intermediate Tax Exempt. The equity sleeve slightly underweights dividend payers to reduce taxable distribution, and the managers opportunistically try to harvest tax losses. Despite those tweaks, however, its performance has remained very close to that of the Russell 1000.
To view this article, become a Morningstar Basic member.
Patricia Oey does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.