Suggest a portfolio for a drip strategy avoiding taxable events
1/22/2025 03:19am
For a drip strategy aimed at avoiding taxable events, it's essential to focus on tax-efficient investment vehicles. Here are some suitable ETFs and stocks to consider:
1. **ETFs with Low Turnover and Long-Term Capital Gains**:
- iShares Core S&P 500 ETF (IVV)
- iShares Core S&P Total U.S. Stock Market ETF (ITOT)
- Schwab U.S. Broad Market ETF (SCHB)
- Vanguard Total Stock Market ETF (VTI)
2. **Active ETFs with Lower Turnover**:
- Harvest ETFs' Equity Income ETFs, which employ covered call techniques for tax efficiency.
3. **Tax-Sheltered Accounts for Bonds**:
- Consider holding taxable bonds in tax-sheltered accounts like IRAs, where withdrawals are tax-free in retirement.
These selections are based on their tax efficiency, low turnover, and ability to minimize capital gains distributions, which are crucial for a drip strategy aimed at avoiding taxable events.