this is a good point and something I didn't consider. Thanks. For buy and hold investors, I believe it makes very little difference but for those trying to optimize tax lost harvesting, I would agree with you that having an exact price point can be helpful.One example might be that I have a $2k loss on some position and I want to do tax loss harvesting.I hear people bring this up a lot, and while technically true, does it really matter? I mean, would it affect your decision to buy if the price goes up .3% from when you initially decide to make the purchase? The vast majority of us are making automated purchases of index funds according to a fairly set schedule. I don't think price plays any part in the purchase decision. If it does, you are effectively trying to time the market, which seems to be the other big no-no in these here parts.One reason I like ETFs is that I know the price when I buy or sell a market order. For a mutual fund, the price is only determined at 4pm EST, so if you place an order at 1pm, you have no idea what the transaction price will be, but you can use limits
With a mutual fund, what if the price goes up through the end of the day such that I’ve missed that loss harvesting opportunity, and instead I just created a gain or just bought some other product unnecessarily? Suboptimal
Statistics: Posted by We're wolves — Sun Jun 16, 2024 7:16 pm