FMD Capital Management

3 ETFs For 2017 Tax-Loss Harvesting

Written by David Fabian, November 28th, 2017

Tax-loss harvesting is one of the more underutilized strategies for taxable investment accounts. This approach involves selling holdings at a loss in the current calendar year to offset capital gains and income. Furthermore, there is the opportunity to replace a mutual fund or ETF with a similar investment to maintain a like-kind asset allocation. The net effect is to mitigate the impact of taxes in a particularly bountiful year.

The first step in this process is identifying holdings that are sitting at a loss and may be ripe for a transition. Your monthly brokerage statement or online portfolio view should allow you to easily spot these culprits. The following categories may be the most easily exploited tax-loss harvesting opportunities for 2017.

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