TLH Replacement Securities Reference
Which ETFs are “substantially identical” for wash sale purposes, and which ones are valid tax-loss harvesting replacements?
The key distinction
- Same index = substantially identical (conservative view). Selling one and buying another within 30 days triggers a wash sale. The loss is disallowed or deferred. Example: SPY and VOO both track the S&P 500.
- Similar segment, different index = valid TLH replacement. You maintain similar market exposure without triggering a wash sale. Example: VTI (CRSP US Total Market) and ITOT (S&P Total Market) cover similar ground but track different indices.
Important
The IRS has never formally defined “substantially identical” for ETFs. There is no authoritative ruling. The same-index interpretation used on this page is the conservative approach adopted by most tax professionals and robo-advisors — it is not settled law. This page is not tax advice. Harvest IY is not a registered investment advisor. Consult a qualified tax professional for your specific situation.
ETFs that track the same index
Selling one and buying another in the same group within 30 days would trigger a wash sale under the conservative interpretation. Each group links to provider fact sheets so you can verify.
US Large Cap
| Index | ETFs | Description | Sources |
|---|---|---|---|
| S&P 500 Index | SPYIVVVOOSPLGSPYM | 500 large-cap US stocks selected by S&P Dow Jones Indices. SPLG was renamed to SPYM on Oct 31, 2025 (same fund, both tickers listed). | |
| S&P 500 Growth Index | SPYGIVWVOOG | S&P 500 constituents classified as growth based on sales growth, earnings growth, and momentum. | |
| S&P 500 Value Index | SPYVIVEVOOV | S&P 500 constituents classified as value based on book value, earnings, and sales ratios. | |
| Nasdaq-100 Index | QQQQQQM | 100 largest non-financial companies listed on NASDAQ, weighted by market cap. | |
| Russell 1000 Index | IWBVONE | 1,000 largest US stocks by market cap (large + mid cap segment of the Russell 3000). | |
| Russell 1000 Growth Index | IWFVONG | Russell 1000 constituents with higher price-to-book ratios and higher forecasted growth. | |
| Russell 1000 Value Index | IWDVONV | Russell 1000 constituents with lower price-to-book ratios and lower forecasted growth. |
US Mid Cap
| Index | ETFs | Description | Sources |
|---|---|---|---|
| S&P MidCap 400 Index | IJHMDYIVOOSPMD | 400 mid-cap US stocks selected by S&P Dow Jones Indices. |
US Small Cap
| Index | ETFs | Description | Sources |
|---|---|---|---|
| S&P SmallCap 600 Index | IJRSLYVIOOSPSM | 600 small-cap US stocks selected by S&P Dow Jones Indices. | |
| Russell 2000 Index | IWMVTWO | 2,000 smallest stocks in the Russell 3000 (the standard US small-cap benchmark). | |
| Russell 2000 Growth Index | IWOVTWG | Russell 2000 constituents with higher price-to-book ratios and higher forecasted growth. | |
| Russell 2000 Value Index | IWNVTWV | Russell 2000 constituents with lower price-to-book ratios and lower forecasted growth. |
US Bonds
| Index | ETFs | Description | Sources |
|---|---|---|---|
| Bloomberg US Aggregate Bond Index | AGGSCHZSPAB | Broad US investment-grade bond market: Treasuries, corporates, MBS, CMBS, and ABS. Note: BND (Vanguard Total Bond Market ETF) is not listed here — it tracks the Bloomberg U.S. Aggregate Float Adjusted Index, which excludes bonds held by the Federal Reserve. | |
| Bloomberg U.S. Treasury 1-3 Year Index | SCHOVGSH | US Treasury securities with 1 to 3 years remaining to maturity. | |
| Bloomberg U.S. Treasury 3-10 Year Bond Index | VGITSCHRSPTI | US Treasury securities with 3 to 10 years remaining to maturity. | |
| Bloomberg Long U.S. Treasury Index | VGLTSPTL | US Treasury securities with 10 or more years remaining to maturity. |
Municipal Bonds
| Index | ETFs | Description | Sources |
|---|---|---|---|
| S&P National AMT-Free Municipal Bond Index | MUBVTEB | Investment-grade US municipal bonds exempt from federal income tax and the Alternative Minimum Tax. |
Commodities
| Index | ETFs | Description | Sources |
|---|---|---|---|
| LBMA Gold Price (gold bullion) | GLDIAUGLDMSGOL | Physical gold bullion, priced against the LBMA Gold Price PM (London afternoon fix). |
Common “trap” pairs — similar exposure, different index
These ETFs cover similar market segments but track different indices. They are not substantially identical and can serve as TLH replacement partners for each other.
| Segment | ETF A | ETF B | Why they differ |
|---|---|---|---|
| US Total Stock Market | VTI CRSP US Total Market Index | ITOT S&P Total Market Index | Both cover the full US stock market, but CRSP and S&P use different selection and weighting methodologies. These are valid TLH replacement partners. |
| Emerging Markets | EEM MSCI Emerging Markets Index | VWO FTSE Emerging Markets All Cap China A Inclusion Index | MSCI and FTSE classify countries differently (e.g., South Korea is emerging in MSCI, developed in FTSE) and have different market-cap coverage. |
| International Developed | EFA MSCI EAFE Index | VEA FTSE Developed All Cap ex US Index | EFA covers large+mid cap developed markets (MSCI), while VEA adds small caps and uses FTSE classification. Different indices, different holdings. |
| US Aggregate Bonds | BND Bloomberg U.S. Aggregate Float Adjusted Index | AGG Bloomberg US Aggregate Bond Index | Both are broad US bond market funds from Bloomberg, but the float-adjusted version (BND) excludes bonds held by the Federal Reserve — a different composition. |
| TIPS (Inflation-Protected) | TIP ICE U.S. Treasury Inflation Linked Bond Index | SCHP Bloomberg U.S. Treasury Inflation-Linked Bond Index (Series-L) | Both cover Treasury Inflation-Protected Securities, but TIP uses an ICE index while SCHP uses a Bloomberg index with different construction rules. |
Frequently asked questions
What does "substantially identical" mean for ETFs?
The IRS has never defined "substantially identical" for ETFs specifically. The conservative interpretation — widely used by tax professionals and robo-advisors — is that ETFs tracking the exact same underlying index are substantially identical. Selling one and buying another that tracks the same index within 30 days would trigger a wash sale, disallowing or deferring the loss.
Is this list definitive? Can I rely on it for my taxes?
No. This page is an informational reference, not tax advice. The IRS has not published an authoritative list of substantially identical securities, and there is no court ruling that directly addresses ETFs tracking the same index. Consult a tax professional for your specific situation. Harvest IY is not a registered investment advisor.
What is tax-loss harvesting?
Tax-loss harvesting (TLH) is the practice of selling an investment that has fallen below your cost basis to realize a capital loss. That loss can offset capital gains elsewhere in your portfolio, reducing your tax bill. If losses exceed gains, up to $3,000 per year can offset ordinary income, with any remainder carried forward to future years.
How do I find a replacement security for TLH?
Look for an ETF that covers a similar market segment but tracks a different index. For example, if you sell VTI (CRSP US Total Market Index) at a loss, you could buy ITOT (S&P Total Market Index) as a replacement — similar exposure, different index, not substantially identical. The "trap" examples on this page show several common pairs.
What about ETFs that changed their benchmark index?
Several ETF providers — Vanguard in particular — have switched the index their funds track over time. The index that matters for wash sale purposes is the one the fund currently tracks, not a historical benchmark. Each entry in the table above reflects the fund's current benchmark as of the page's last update.
Why is BND not in the Bloomberg US Aggregate Bond group?
BND (Vanguard Total Bond Market ETF) tracks the Bloomberg U.S. Aggregate Float Adjusted Index, which excludes bonds held by the Federal Reserve. AGG, SCHZ, and SPAB track the standard Bloomberg US Aggregate Bond Index. Despite the similar names, these are technically different indices with different compositions. Under the conservative same-index interpretation, BND and AGG are not substantially identical — which means they can serve as TLH replacement partners for each other.
Harvest IY monitors your portfolio for tax-loss harvesting opportunities and checks for wash sale conflicts automatically — including all the groups listed above. See plans.