To avoid violating the 'substantially identical' clause of the wash sale rule when applying tax-loss harvesting to a portfolio of index-based ETFs, investors must use two securities that track different indexes. Swapping an ETF with another that tracks the same index from a different issuer, such as Vanguard versus Schwab, violates the substantially identical rule.

Authors

• Person: Not available Organization: Wealthfront
  Wealthfront Tax-Loss Harvesting - Methodology

Sources

• Wealthfront Tax-Loss Harvesting - Methodology research.wealthfront.com Wealthfront via serper

Referenced by nodes (1)

• wash-sale rule concept