What is Vanguard redemption fee?

Redemption fees are intended to discourage short-term trading and when assessed are paid back into the applicable fund to help defray the transaction costs arising from the short-term trade. Fees will be applied only on shares exchanged out of a fund before the fund’s redemption fee holding period expires.

Is Vtmfx tax-efficient?

Management. Vanguard Tax-Managed Balanced Fund seeks a tax-efficient total return, consisting of federally tax-exempt income, capital growth, and modest taxable current income. Fund assets are allocated to maintain approximately 50% in stocks and 50% in municipal bonds.

Is Vtmfx actively managed?

Vanguard’s trademark is low-cost index products, but the company offers many actively managed funds as well.

What funds are taxable in bogleheads?


  • Low-yield money market, cash, short-term bond funds.
  • Tax-managed stock funds.
  • Large-cap and total-market stock index funds.
  • Balanced index funds.
  • Small-cap or mid-cap index funds.
  • Value index funds.

What are 401k redemption fees?

Redemption fees are charges in addition to specified sales charges that may apply. These fees lower your 401(k) balance, reducing the deposit dollars that go into your account.

What is a redemption fee?

A shareholder fee that some funds charge when investors redeem (sell) mutual fund shares. Redemption fees, which must be paid to the fund, are not the same as and may be in addition to a back-end load, which is typically paid to a broker.

Is Vbiax a good fund?

The fund is a low-cost, domestic balanced fund. Since this fund has both stocks and bonds, it provides growth while generating income at the same time. Investors looking for growth and income can consider it for a core holding in their portfolio.

Which Vanguard funds are most tax-efficient?

These are some of the best Vanguard funds for taxable accounts, in no order.

  • Vanguard Total Stock Market Index (VTSAX)
  • Vanguard Tax-Managed Capital Appreciation Fund (VTCLX)
  • Vanguard Tax-Managed Balanced Fund (VTMFX)
  • Vanguard Intermediate-Term Tax-Exempt Fund (VWITX)
  • Vanguard Tax-Exempt Bond Index (VTEAX)

How do foreign tax credits work?

What is the Foreign Tax Credit? The US Foreign Tax Credit allows Americans who pay foreign income taxes to claim US tax credits on a dollar for dollar basis to the same value as income taxes that they’ve already paid to another country, so reducing their US tax liability.

Is REIT tax inefficient?

REIT dividends generally don’t receive the same favorable tax rates that most dividends do. Most dividends are “qualified dividends,” so recipients pay the same lower tax rates that apply to long-term capital gains.

What is redemption fee?

A redemption fee is a fee charged to an investor when shares are sold from a fund. This fee, also known as an exit fee, market timing fee, or short-term trading fee, is charged by the fund company and then added back to the fund. Typically, it only applies when shares are sold within a specified time frame.