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Is it better to hold a bond fund or a stock fund in a taxable account?

Given that choice, stock.

IMO a better way of looking at it is that to the extent possible you want investments that throw off ordinary income in your retirement accounts and investments that produce primarily qualified dividends and long-term cap gains in your taxable account. A stock MF that is actively managed and does a lot of short-term trades is better in a retirement account while a tax-efficient stock fund is better in your taxable account.

Rule Your Retirement Home Fool
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