Is tax-loss harvesting valuable after the first few years?

Dimensional shows factor rebalancing persists harvesting opportunities

Factor rebalancing (peanut butter) resets the cost basis higher, which preserves loss-harvesting opportunities (jelly).

Okay, so, you fund a new portfolio with cash, because you’re all jazzed about this direct indexing stuff you’ve heard about.

Then, 5 years pass, and you have index-like exposure, but your manager isn’t tax-loss harvesting as much becaus…