Skip to main content

Understanding VSP Custodians

What is VSP?

Versus Specific Purchase (VSP) refers to a custodian’s ability to trade specific tax lots regardless of the default lot relief method via automated order submission.

Why VSP Matters

With VSP:

  • Advisors can target exact lots and/or quantities

  • Lots with gain can be explicitly avoided

Without VSP:

  • Advisor specify total quantity to harvest

  • Custodian tax lot depletion methods apply

  • Lots with gains may be included

VSP Custodians

Advisors can:

  • Select exact lots

  • Harvest partial lots

  • Customize tax outcomes

Non-VSP Custodians

Harvesting occurs at the:

  • Position level

SMArtX displays lots based on the account's default tax lot depletion method. Execution ultimately follows settings at the custodian.

Best Practices

VSP Custodians

Use:

  • Lot-level Harvest Rules

Non-VSP Custodians

Use:

  • Position-level Harvest Rules

VSP Custodians

VSP via automated order submission is available at:

  • Charles Schwab

  • Fidelity IWS

  • Fidelity NFS

  • Raymond James

Related Articles
Did this answer your question?