Total market vs re-balancing within the US market

I have been investing for a long time based on general principles of the efficient frontier and "modern" portfolio theory. Which I am very thankful for and recommend. 1952-ish paper? Anyway, I am wondering about LT cap gains, taxes and mutual funds. This is a hypothetical question because the specific example is held in my tax-free Roth IRA. I noticed that my Small Gap Growth Index fund distributed 8% in LT cap gain on 8/14. As far as I can tell some previously small cap stocks (eg s

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