EEMV
iShares MSCI Emerging Markets Min Vol Factor ETF
stock BATS ETF

After reviewing a few thiusands of posts on bogleheads and RR and optimized portfolio, im looking for evidence-based feedback on simplifying and tax efficiencies of levered fund RSSB.
My goal is to capture broad market beta with a permanent, light factor tilt (size, value, profitability, and low-vol) to balance out tech-heavy cap weighting.
​My current allocation is from my earlier factor investing days.
​US: RSSB (25%) / DFUS (24%) / AVUV (7.5%) / USMV (7.5%)
​Ex-US: VXUS (21%) / AVDV (5%) / AVEE (5%) / EEMV (5%)
​I am comfortable with leverage and tracking error, but I am questioning RSSB’s structural viability in a taxable account.
My concerns
​Tax Drag: Because of its futures rolling mechanism, RSSB has distributed decent capital gains over the last two tax years. It looks like a drag of around 1.6% give or take? In a taxable account, this annual cash drag seems to break the mathematical advantage of the 100/100 stack.
​Cost of Carry: With short-term financing rates remaining elevated, the hurdle rate for the bond overlay to generate a positive net spread seems high.
​Proposed Forward Strategy (New Cash Only):
​Instead of managing a levered 9-fund with the complexity of RSSB, I am considering reducing to AVUS + DFAI. This gives me tax-efficient total market beta with an automated, light tilt toward value and profitability. I could add a few funds but 9 was a bit much.
​Unlevered Bonds: I’m considering a 95/5 or 90/10 equity-to-bond split using EDV (Vanguard Extended Duration Treasury) for my fixed income sleeve for the defensive hedge without needing the complexity or tax drag of levered funds.
​Questions:
​For those tracking capital efficiency in taxable accounts, does the real-world tax drag of RSSB completely negate its academic outperformance relative to a non-levered portfolio?
​Does switching future contributions to AVUS/DFAI provide a tighter, more sustainable fit for "near-market beta with light tilts" than trying to manually balance a multi-fund portfolio?
​Looking for quantitative opinions since there are so many here that are smarter and better at this stuff than I am. Thanks!

After reviewing a few thiusands of posts on bogleheads and RR and optimized portfolio, im looking for evidence-based feedback on simplifying and tax efficiencies of levered fund RSSB.
My goal is to capture broad market beta with a permanent, light factor tilt (size, value, profitability, and low-vol) to balance out tech-heavy cap weighting.
​My current allocation is from my earlier factor investing days.
​US: RSSB (25%) / DFUS (24%) / AVUV (7.5%) / USMV (7.5%)
​Ex-US: VXUS (21%) / AVDV (5%) / AVEE (5%) / EEMV (5%)
​I am comfortable with leverage and tracking error, but I am questioning RSSB’s structural viability in a taxable account.
My concerns
​Tax Drag: Because of its futures rolling mechanism, RSSB has distributed decent capital gains over the last two tax years. It looks like a drag of around 1.6% give or take? In a taxable account, this annual cash drag seems to break the mathematical advantage of the 100/100 stack.
​Cost of Carry: With short-term financing rates remaining elevated, the hurdle rate for the bond overlay to generate a positive net spread seems high.
​Proposed Forward Strategy (New Cash Only):
​Instead of managing a levered 9-fund with the complexity of RSSB, I am considering reducing to AVUS + DFAI. This gives me tax-efficient total market beta with an automated, light tilt toward value and profitability. I could add a few funds but 9 was a bit much.
​Unlevered Bonds: I’m considering a 95/5 or 90/10 equity-to-bond split using EDV (Vanguard Extended Duration Treasury) for my fixed income sleeve for the defensive hedge without needing the complexity or tax drag of levered funds.
​Questions:
​For those tracking capital efficiency in taxable accounts, does the real-world tax drag of RSSB completely negate its academic outperformance relative to a non-levered portfolio?
​Does switching future contributions to AVUS/DFAI provide a tighter, more sustainable fit for "near-market beta with light tilts" than trying to manually balance a multi-fund portfolio?
​Looking for quantitative opinions since there are so many here that are smarter and better at this stuff than I am. Thanks!