If you sell a national municipal bond mutual fund and immediately buy a single-state municipal bond fund, would that be considered a wash sale?
The two funds have different expense ratios, different portfolio managers.
They also have materially different risk profiles:
* The national fund spreads credit risk across many states and issuers.
* The state-specific fund is concentrated in one state's economy and municipal issuers.
The tax treatment also differs:
* The national fund generally provides federal tax-exempt income.
* The state fund generally provides both federal and state tax-exempt income.
Given these differences, are they considered different enough to avoid being "substantially identical" for wash sale purposes?