Are two options ever too similar for taxes?

Are QQQ and QQQM substantially identical?

QQQ is the big one that everybody is familiar with. It’s currently the 5th largest ETF in the marketplace with more than $150 billion in assets and is the largest that isn’t focused on the S&P 500 or total U.S. stock market. QQQM is essentially the same as the QQQ, but with a lower expense ratio.

Are VTI and VOO substantially identical?

And the answer is: YES, VTI and VOO are substantially identical (84% overlap by weight, i.e. more than 70%).

What is considered substantially similar?

Substantially similar means similar in importance, degree, amount, placement or extent.

Are leveraged ETFs substantially identical?

ETFs can be used to avoid the wash sale rule while maintaining a similar investment holding. This is because ETFs typically are an index for a sector or other group of stocks and are not substantially identical to a single stock.

How do I know if a security is substantially identical?

In the case of substantially identical, the most relevant guidance appears in Publication 550, which states, “In determining whether stock or securities are substantially identical, you must consider all the facts and circumstances in your particular case.” The Publication clarifies that “ordinarily, stocks or …