I’m not sure how this would work. If you sell losers and winners to balance the capital gains each year, then at the end of the year you don’t quite match the S&P500 anymore. Now go out 10 years, and you’ve sold the S&P500 winners, and you’ve sold the S&P500 losers, and you’ve mostly held the middling S&P500 stocks. What happens to total performance over a few decades? My gut tells me that it’ll be lower than just the plain old S&P500 as is. But I don’t know how big the tax effect is over the years. Maybe the tax effect makes it worth it? Anyone run the numbers on historical data? (similarly to the REHP spreadsheets of ~30 years ago)
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