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if your money isn't tax sheltered (IRA or 401k) then an index fund will be worse than buying those individual stocks. ... as long as you're handling sufficient
by cperciva 13y ago
if your money isn't tax sheltered (IRA or 401k) then an index fund will be worse than buying those individual stocks.
... as long as you're handling sufficiently large amounts of money that you don't lose the difference on trade commissions. Rebalancing my ETF portfolio costs me $60 (6 ETFs, $10/trade), but rebalancing a portfolio consisting of the 2000 individual stocks and bonds in those ETFs would be insane.
- Lightbody 13y agoAbsolutely right. It helps that you don't really need all x000 stocks since a diversified subset (say 100) will be very close to index performance and still yield the harvesting benefit.
- jordanthoms 13y agoYou may want to look at Vanguard as a broker - trading Vanguard ETFs through them is free.