According to the Wash Sale rule, if you sell a stock at a loss, and then buy the stock back within 30 days, you can't claim the first sale as a loss. With the emergence of index-based mutual funds and ETFs, the rule also applies to "substantially identical" securities. For instance, you can't sell a S&P 500 mutual fund from one company and then immediately buy another S&P 500 mutual fund from some other company and claim a loss from the first sale. They can't be "substantially identical".We've had this discussion before. S&P 500 funds from different companies are not substantially identical. While they may strive to mimic the same index, they won't do it exactly the same way. They do not own shares of all 500 stocks in the exact proportion as comprises the index.Therefore a fund that is targeting twice the performance of a benchmark is certainly not substantially identical to a fund that targets the benchmark.Ira
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