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Why Tax-Loss Harvesting Is Important in Direct Indexing

Tax-loss harvesting involves selling underperforming stocks at a loss and then using the proceeds to invest in correlated securities. This process mitigates an investor’s tax bill while navigating the wash-sale rule. Most advisors already use TLH at the end of the year to help improve their clients’ after-tax returns. However, Vanguard notes that direct indexing [...] The post Why Tax-Loss Harvesting Is Important in Direct Indexing appeared first on ETF Trends .
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