Suppose I'm taking losses in a set of individual stocks (X, Y, Z ...). What are the US tax implications if I sell all of them, harvest losses for tax purposes, and select an ETF E with significant exposure to X, Y, Z and buy immediately. Would that trigger wash sale?

1 Answer 1


The wash sale rule applies to "substantially identical" stock or options.

An ETF is not a "substantially identical" to any individual stock. The only way that it would be applicable would be if one owned (or was short) all of the stocks in the ETF.

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