I was recently told by a CFA that I should move my money (mainly in VFIAX) out of an index fund and into an ETF because they are more tax efficient. I know that Vanguard's S&P 500 Index fund and ETF are essentially the exact same when it comes to tax efficiency, but what about iShares, Fidelity, etc? From what I've seen they all have about the same dividend yield of 2% and about the same expense ratio as well, so are they all essentially the same? Is there any way to avoid paying taxes on these yearly 2% dividends in a taxable account? In theory, a $20k taxable dividend on a $1M portfolio could do some real damage long term.
Submitted March 08, 2019 at 09:14PM by brogers33 https://ift.tt/2Cfsu2J
