Investing Ideas

Tapping into tax-loss harvesting with custom SMAs

How to enhance after-tax returns while working toward long-term investment goals.

By: Fidelity Investments

Updated: 1/2/2026

Key Takeaways

Thoughtful tax-loss harvesting via custom separately managed accounts (SMAs) can help investors keep more of what they earn.
Custom SMAs allow investors to pursue the broad market exposure of an index fund through the purchase of individual stocks and/or bonds.
Investors with substantial holdings in taxable accounts are well-positioned to benefit from the tax-loss harvesting capacity of a custom SMA.

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Tapping into tax-loss harvesting with custom SMAs

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