The way actual index funds vs individual balancing works is different. For individuals if you buy a stock and sell it at loss within 30 days, that’s considered

The way actual index funds vs individual balancing works is different. For individuals if you buy a stock and sell it at loss within 30 days, that’s considered a wash sale. AFAIK doing trades like that are penalized and not considered losses from tax perspective. So if you’re balancing the portfolio everyday like FNILX and VOO with 500 trades, you’d be racking up tons of wash sales. IRS will come knocking if you fraudulently claim losses.