A fidelity advisor suggested that Fidelity Tax Managed account with an expense ratio of 0.4 that tracks the returns is S&P500 is much better suited than a traditional S&P500 ETF like VOO which has an expense ratio like 0.03. I was told that the tax savings would more than make up for the higher expense ratio. Can someone advise which one is the best way to go? Sorry if it's a noob question.
How? What will they do?
I'm not an investment guru. So I really don't know. From that I understood they'll match the same returns as SPY, but I don't have to pay taxes on Dividend income and some end of year ETF distribution income.
I think it is about Tax loss harvesting which they’ll do and it is not about not paying taxes for other incomes
What investment amount are we talking about?
Let's say 150k
VOO in that case.
I have the same question. I was recommended to this thing every time I met my investment advisor.
Tax saving?