I am trying to decide between a 1 fund approach with AVGE or a 2 fund approach with VTI + VXUS with a 60/40 ratio in my taxable account. The 1 fund approach with AVGE is appealing because it is ultra lazy, and since it is a fund-of-funds I should get the FTC for the international portion. The 2 fund approach with VTI + VXUS with a 60/40 ratio is my other option since VT is not a fund-of-funds, so I would not get the FTC for international. I realize that AVGE is currently 71% US while VT is currently closer to 60% US (this does not bother me). My main concern is the tax efficiency of AVGE vs. VTI + VXUS. AVGE is a rules-based actively managed ETF with a mild small-value tilt, and I assume it will occasionally rebalance between the underlying funds. Also, value stocks tend to pay more dividends than growth stocks. I understand that holding actively managed equity funds should generally be avoided in taxable accounts. However, there have been multiple forum discussions about the tax efficiency of AVGE in the past and I haven't seen a decisive answer. Any updated thoughts on the long-term tax efficiency of AVGE vs. VTI + VXUS?
Statistics: Posted by mlaney — Sat Sep 14, 2024 12:18 pm — Replies 2 — Views 174