TLH Replacement Securities Reference
Which ETF pairs can be used as tax-loss harvesting replacements, and which pairs would trigger a wash sale for being “substantially identical”
Last updated: July 2026
The key distinction
- 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) both provide exposure to the total US equity market but track different indices.
- 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.
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 a common conservative approach (see Bogleheads, White Coat Investor), but it is not settled law.
This page is not tax advice. Harvest IY is not a registered investment advisor, tax advisor, or certified public accountant. Consult a qualified tax professional for your specific situation.
Valid TLH replacement securities
These ETFs cover similar market segments but track different indices. Sell one at a loss, buy one from a different column to maintain similar exposure without triggering a wash sale.
US Total Stock Market
All cover the full US stock market, but CRSP, S&P, and Dow Jones use different selection and weighting methodologies.
| Option A | Option B | Option C |
|---|---|---|
VTISPTM CRSP US Total Market Index | ITOT S&P Total Market Index | SCHB Dow Jones U.S. Broad Stock Market Index |
Emerging Markets
MSCI and FTSE classify countries differently (e.g., South Korea is emerging in MSCI, developed in FTSE) and have different market-cap coverage.
| Option A | Option B |
|---|---|
EEMIEMG MSCI Emerging Markets Index | VWO FTSE Emerging Markets All Cap China A Inclusion Index |
International Developed
MSCI and FTSE classify countries differently and have different market-cap coverage. EFA covers large+mid cap, while VEA and SPDW include small caps.
| Option A | Option B | Option C |
|---|---|---|
EFA MSCI EAFE Index | VEA FTSE Developed All Cap ex US Index | SPDW S&P Developed Ex-U.S. BMI Index |
US Aggregate Bonds
All are broad US bond market funds, but the float-adjusted version (BND) excludes bonds held by the Federal Reserve, resulting in a different composition.
| Option A | Option B |
|---|---|
BND Bloomberg U.S. Aggregate Float Adjusted Index | AGGSCHZSPAB Bloomberg US Aggregate Bond Index |
TIPS (Inflation-Protected)
All cover Treasury Inflation-Protected Securities, but use indices from different providers with different construction rules.
| Option A | Option B |
|---|---|
TIP ICE U.S. Treasury Inflation Linked Bond Index | SCHP Bloomberg U.S. Treasury Inflation-Linked Bond Index (Series-L) |
Watch out: ETFs that track the same index
To be safe, we treat these as “substantially identical.” Selling one and buying another in the same group within 30 days could trigger a wash sale.
US Large Cap
| Index | ETFs | Description |
|---|---|---|
| S&P 500 Index | 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 | S&P 500 constituents classified as growth based on sales growth, earnings growth, and momentum. | |
| S&P 500 Value Index | S&P 500 constituents classified as value based on book value, earnings, and sales ratios. | |
| Nasdaq-100 Index | 100 largest non-financial companies listed on NASDAQ, weighted by market cap. | |
| Russell 1000 Index | 1,000 largest US stocks by market cap (large + mid cap segment of the Russell 3000). | |
| Russell 1000 Growth Index | Russell 1000 constituents with higher price-to-book ratios and higher forecasted growth. | |
| Russell 1000 Value Index | Russell 1000 constituents with lower price-to-book ratios and lower forecasted growth. |
US Mid Cap
US Small Cap
| Index | ETFs | Description |
|---|---|---|
| S&P SmallCap 600 Index | 600 small-cap US stocks selected by S&P Dow Jones Indices. | |
| Russell 2000 Index | 2,000 smallest stocks in the Russell 3000 (the standard US small-cap benchmark). | |
| Russell 2000 Growth Index | Russell 2000 constituents with higher price-to-book ratios and higher forecasted growth. | |
| Russell 2000 Value Index | Russell 2000 constituents with lower price-to-book ratios and lower forecasted growth. |
US Bonds
| Index | ETFs | Description |
|---|---|---|
| Bloomberg US Aggregate Bond Index | Broad US investment-grade bond market: Treasuries, corporates, MBS, CMBS, and ABS. Note: BND (Vanguard Total Bond Market ETF) is not listed here because 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 | US Treasury securities with 1 to 3 years remaining to maturity. | |
| Bloomberg U.S. Treasury 3-10 Year Bond Index | US Treasury securities with 3 to 10 years remaining to maturity. | |
| Bloomberg Long U.S. Treasury Index | US Treasury securities with 10 or more years remaining to maturity. |
Municipal Bonds
Frequently asked questions
What does "substantially identical" mean for ETFs?
The IRS has never defined "substantially identical" for ETFs specifically. A common conservative interpretation 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 replacement pairs table on this page shows several common examples.
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.