Sentences with phrase «tax efficiency ratio»
Tax Efficiency: The Tax Efficiency Ratio is an estimate, expressed as a percentage, of a fund's total return achieved over a period of time that is retained by the taxable investor.
http://www.renaissanceinvestments.ca/ Not exact matches
Yet another way to make your mutual funds more tax - efficient is to select funds with a high tax - efficiency ratio.
The best way to choose funds is with good long - term performance over the past 1, 3, and 5 years; low expense ratios; and tax efficiency if in taxable accounts.
VTSMX seems like a good fund to hold for its low expense ratio and the tax efficiency of an index fund.
If the fund in question is going to be held in a taxable account, I make sure to look at two additional metrics: the «tax cost ratio» (on the «tax» tab) and portfolio turnover (on the «quote» tab), both of which can give an idea of the fund's tax efficiency.
In the same vein, brokers selling ETFs may point to lower ETF management expense ratios and the supposed superior tax efficiency of ETFs.
«When choosing among similarly priced funds, we suggest investors consider elements beyond the expense ratio, such as investment strategy, methodology, tracking difference, spreads, tax efficiency, and brand.»
On the plus side, the tax efficiency of having a high turnover factor or strategy wrapper could drastically outweigh the expense ratio.
In 2013, for example, the iShares Canadian Universe Bond Index ETF (XBB) had an after - tax return of -3.10 % and a before tax return of -1.47 %, resulting in a tax - efficiency ratio of +2.11 or +211 %, which is obviously incorrect.
If a fund is in a tax - deferred account (IRA or 401k), then you don't care about tax - efficiency (or the turnover ratio).
Unfortunately, if the fund has a negative before - tax return, the tax - efficiency ratio would not make any sense.