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VTMFX

willmatt72
in Fund Discussions
I was curious about your thoughts on Vanguard Tax Managed Balanced Fund as a tax-efficient, long term holding in a taxable account. It appears that the fund is divided fairly equally between equities and muni bonds. Do you think this could be used in place of something like BERIX as a more tax-efficient alternative in a taxable account? I do wonder how the fund would react in a rising rate environment as well.

Comments

  • TedTed
    edited November 2014
    @willmatt72: Tax analysis VTMFX vs. BERIX.
    Regards,
    Ted
    BERIX: http://performance.morningstar.com/fund/tax-analysis.action?t=BERIX&region=usa&culture=en-US

    VTMFX: http://performance.morningstar.com/fund/tax-analysis.action?t=VTMFX&region=usa&culture=en-US



  • willmatt72
    VTMFX has it beat for tax efficiency, that's for sure.
  • 00BY
    You could split between two funds, say EXTAX and FLTMX.

    Performance of VTMFX seems pretty good over the past 3 years
  • willmatt72
    00BY said:

    You could split between two funds, say EXTAX and FLTMX.

    Performance of VTMFX seems pretty good over the past 3 years

    Not too thrilled with the ER for EXTAX - seems a bit high to me compared with VTMFX.
  • 00BY
    edited November 2014
    Yes, It is higher than I would like as well. But compare the AUM: 1.81 B for VTMFX vs. 34M for EXTAX. That doesn't include Vanguard's billions in similarly managed funds in the tax managed series. Plus its is Vanguard. Tough to beat them on ER. They are large and low ER is their gig.

    EXTAX needs to increase their AUM before they can reduce the ER. But even if they had equal AUM, they would never come close to Vanguard's ER. (EXDAX has an ER of 0.88) Manning & Napier is a respectable outfit, though.

    Here is the MFO profile of Manning and Napier Dividend Focus (MNDFX) and you'll notice his remarks on EXTAX in the bottom line.
  • fundalarmfundalarm
    @00BY: why does AUM matter for an index fund? also the OP was interested in a low/no tax fund..
  • willmatt72
    VTMFX looks like a damn good fund to me: Low ER, interesting mix for a balanced fund and it's done well in the past. I like BERIX but it seems to be a better fund for a IRA or tax-deferred account.
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