This week marks two anniversaries of significance for me. Thirty years ago this week, the first exchange-traded fund (ETF) had its initial public offering (IPO). I bought shares in my own account on the IPO of the Standard and Poors Depository Receipt (SPDR), which tracks the S&P500. I knew it was a game changer. This…
The market continues its roller coaster ride for 2022. Typical stock mutual funds are down 20%. This decline is problematic enough, but adding insult to injury, taxes are about to make it worse for fund owners. Long-time readers will remember my numerous posts about the tax differences between various mutual fund structures. Since deferral or…
Rather than count the ways, let’s just discuss one for today – tax efficiency. Traditional Mutual Funds Traditional mutual funds, like those from Fidelity, Putnam, or any other fund company, have a particular type of accounting that results in tax inefficiencies for investors. Accounting rules for these open-ended mutual funds force all fund shareholders to…
Any routine reader of this blog will know I’m a fan of Exchange Traded Funds (ETFs). ETFs are fast becoming the world’s most popular investment product. The king’s crown of most popular product still belongs to active mutual funds, but ETFs are on pace to dethrone them. With rare exception, ETFs are far cheaper to…
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