I’m investing through schwabb and for a while I’ve been investing in a few mutual funds. I realized recently that one of the funds SWLSX has an expense ratio of 1.01%, and one of the similar funds, SWLGX has an expense ratio of 0.04%. I was looking at moving the funds from the higher expense fund to the lower one but was unsure of the best way to do it.
I only recently switched (3 weeks ago) to putting my biweekly investments in the lower expense fund. Would it be better to hold the existing SWLSX shares until they hit 1 year, to avoid short term capital gains tax. Or should I just immediately cash them out now and turn around and buy SWLGX, avoiding the 1% expense.
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