Some people attribute their tax efficiency to the low-turnover nature of the indices underlying many ETFs. Low turnover is a factor but there is another critical driver of ETF tax efficiency: their in-kind creation and redemption process. If are interested in this topic, here is a link to an article on this topic: WHY ETFS ARE MORE TAX-EFFICIENT THAN MUTUAL FUNDS.
- Illustrating the Value of Retirement Accounts
- Quantifying the Value of Retirement Accounts
- Video discussions on my videos page
- My PDF guide entitled Sensible Strategies to Reduce Your Taxes
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