Sentences with phrase «tax cost ratio»

Over five years, both Canadian and global REITs had tax cost ratios over 1.6 %, which would cause a huge drag on returns.

A taxable investor who is comparing two similar funds that have the same before - tax return would prefer the fund with the lower tax cost ratio.

The average 5 - year Tax Cost Ratio of iShares ETFs and actively managed open - end mutual funds available in the U.S. (excluding municipal bond and money market funds) included in the comparison is 0.76 % and 1.46 %, respectively.

The spreadsheet then calculated the before - tax return (both reported and adjusted, as explained below), after - tax return, and tax cost ratio for the ETF over periods of one to 10 years.

The average 5 - year Tax Cost Ratio of iShares ETFs and actively managed open - end mutual funds available in the U.S. (excluding municipal bond and money market funds) included in the comparison is 0.76 % and 1.46 %, respectively.

In 2013, for example, the iShares S&P / TSX Capped REIT (XRE) had a pre-tax return of about — 6 %, but we estimate the after - tax return at — 8.56 %, for a very high tax cost ratio of 2.72 %.

We've included the after - tax returns and tax cost ratios below of ETFsFranklin Templeton (Keyword) in 13 different asset classes.

The iShares S&P / TSX Canadian Preferred Share (CPD) and the iShares Canadian Select Dividend (XDV) both showed much higher tax cost ratios than theiShares Core S&P / TSX Capped Composite (XIC).

For example, the iShares Canadian Universe Bond Index ETF (XBB) had a 10 - year tax cost ratio of 2.01 %, nearly twice that of the iShares Core S&P / TSX Capped Composite Index ETF (XIC), which came in at around 1.02 %.

«Tax Cost Ratio» is a Morningstar measure of the impact of taxes on capital gains and income distributions on performance.

Morningstar has a measure called «tax cost ratio» — the amount of a fund's annualized return that is lost to taxes paid on distributions.

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.

We also present the fund's tax cost ratio, a calculation designed to capture the amount of a fund's distributions that's lost to taxes.

Both Justin and I have written about the serious tax inefficiencies of traditional bond ETFs, and this point is driven home with a glance at their tax cost ratios.

Check Morningstar's Tax Cost Ratio, which the firm calculates for every fund and which gives you an idea of how much of a fund's return was lost to taxes.

«Tax Cost Ratio» is a Morningstar measure of the impact of taxes on capital gains and income distributions on performance.

Where ATR is the after - tax return and BTR is the before - tax return, the equation for the tax cost ratio is:

A different measure, the tax cost ratio, was popularized by Morningstar as a way to measure the proportion of a fund's annualized return that is lost to taxes on distributions.

Their after - tax returns, however, were significantly different: XCV had an after - tax return of 13.80 % and a tax cost ratio of 1.10 %.

Note, however, that the tax cost ratio can be distorted by differences in management fees and unrecoverable foreign withholding taxes.

Comparing the tax cost ratio of funds in different asset classes can also help investors make better asset location decisions.

XEI had an after - tax return of 12.73 %, with a tax cost ratio of 2.06 %.