Tax loss harvesting is a staple of year-end planning.
Bonds are ripe for tax loss harvesting in the wake of the Federal Reserve's rate-hiking cycle.
Consider that the longer-dated iShares 20+ Year Treasury Bond ETF (TLT) has a year-to-date total return of about -7.3%, while the shorter-term iShares Core US Aggregate Bond ETF (AGG) has a total return of roughly 0.7% in 2023, according to Morningstar.
"Tax loss harvesting is a silver lining for some of the pain they've been feeling the last couple of years."
Bonds and the wash sale rule To benefit from tax loss harvesting, investors must avoid violating the wash sale rule .
Persons:
Bonds, Morningstar, Kristy Akullian, Jeffrey Levine, St . Louis, Levine, Jordan Naffa, Naffa, VGSH, Lisa, Kirchenbauer
Organizations:
Treasury Bond ETF, Bond, BlackRock, Internal, Strategic Wealth, Arista Wealth Management, Treasury, SEC, VGIT, Omega Wealth Management
Locations:
St ., Las Vegas, Arlington , Va