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 CustodiansAdvisors can:
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Non-VSP CustodiansHarvesting occurs at the:
SMArtX displays lots based on the account's default tax lot depletion method. Execution ultimately follows settings at the custodian. |
Best Practices
Use position-based rules when the cumulative loss or gain should be used to determine if a position meets the rule criteria; use lot-based rules when the loss or gain of specific tax lots should be used to determine if a position meets the rule criteria; use position-level rules for non-VSP eligible custodians.
VSP Custodians
VSP via automated order submission is available at:
Charles Schwab
Fidelity IWS
Fidelity NFS
Raymond James