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I remember being amazed at the size of certain US state's economies. For example California's economy is so large it surpasses Russia and Italy and would be admited into the G-8 if it were a country.
Since we have country etfs, I was wondering... why not state (US) specific efts.
Open end funds - Franklin used to have California Growth Fund but it later broadened its charter, figuring that even Calif. was too localized. So I have my doubts on the equity side.
On the bond side, there are loads of state-specific bond funds, especially for California, because with such a large economy it borrows tons of money (and it has a high income tax rate). Here are the three Calif. muni ETFs: http://etfdb.com/etfdb-category/california-munis/
Texas and North Dakota comes to mind with their energy boom. I'll take a stab at this...create a state specific etf that is a combination of state munis and equities.
An etf that provides tax efficient income from state munis as well as growth from equities doing business in the state.
@msf...Broadening the equity holdings to "companies doing business in the state" would allow for many more MC and LC companies that have a more global footprint.
@rono & @mark: I have been Long/Short CT&FL for the last few years...I short FL in the summer and CT in the winter. Dividends are: - I never lose my tan, -open toed shoes and -fresh produce.
It's an apples and oranges kind of portfolio...very fruitful.
@charles: 50% state muni ETF or muni fund 50% VTI (Vanguard Total Stock Market)...adding state specific etfs might be a way of "goosing" sector weightings such as energy (TX, SD) or tech (CA,MA,NC) or trends such as boomer-nomics (FL, AZ).
The closest I have come to simplifying this idea in one mutual fund is USBLX which accomplishes this by combining national munis with a S&P index fund. It does this at a fairly high ER (1%). The fund advertises itself as a "growth and tax strategy fund" and M* categorizes it as conservative allocation.
Other question I have:
Are etfs treated like stock holdings when it comes to tax harvesting strategies...much like selling stocks to harvest losses?
Also, at death do etfs adjust their cost basis (like individual stocks) making them a better vehicle for inheritance than mutual funds?
@bee: "Are etfs treated like stock holdings when it comes to tax harvesting strategies...much like selling stocks to harvest losses? Also, at death do etfs adjust their cost basis (like individual stocks) making them a better vehicle for inheritance than mutual funds?"
Comments
Once upon a time............ TXF (Texas) and OOK (Oklahoma)
etf site story
Take care,
Catch
On the bond side, there are loads of state-specific bond funds, especially for California, because with such a large economy it borrows tons of money (and it has a high income tax rate). Here are the three Calif. muni ETFs: http://etfdb.com/etfdb-category/california-munis/
Texas and North Dakota comes to mind with their energy boom. I'll take a stab at this...create a state specific etf that is a combination of state munis and equities.
An etf that provides tax efficient income from state munis as well as growth from equities doing business in the state.
@msf...Broadening the equity holdings to "companies doing business in the state" would allow for many more MC and LC companies that have a more global footprint.
Here's a country "exposure tool" that identifies countries specific stock companies that are listed as equity holdings within an etf.
etf-country-exposure-tool/
Hey, attached is link to spreadsheet of SP500 companies by state (HQ resident in UsA)...
https://docs.google.com/spreadsheets/d/1zQLGEjAd-gf19k5eMr46im_wsg19zahFd1pNOcO6ssE/pubhtml
or
https://docs.google.com/spreadsheets/d/1zQLGEjAd-gf19k5eMr46im_wsg19zahFd1pNOcO6ssE/edit?usp=sharing
Maybe you can create your own EtF...or, proxy.
c
Wow, I sure wish there were state specific ETFs. I'd like to short Florida. teehehe
peace,
rono
I have been Long/Short CT&FL for the last few years...I short FL in the summer and CT in the winter. Dividends are:
- I never lose my tan,
-open toed shoes and
-fresh produce.
It's an apples and oranges kind of portfolio...very fruitful.
@charles:
50% state muni ETF or muni fund
50% VTI (Vanguard Total Stock Market)...adding state specific etfs might be a way of "goosing" sector weightings such as energy (TX, SD) or tech (CA,MA,NC) or trends such as boomer-nomics (FL, AZ).
The closest I have come to simplifying this idea in one mutual fund is USBLX which accomplishes this by combining national munis with a S&P index fund. It does this at a fairly high ER (1%). The fund advertises itself as a "growth and tax strategy fund" and M* categorizes it as conservative allocation.
Other question I have:
Are etfs treated like stock holdings when it comes to tax harvesting strategies...much like selling stocks to harvest losses?
Also, at death do etfs adjust their cost basis (like individual stocks) making them a better vehicle for inheritance than mutual funds?
Also, at death do etfs adjust their cost basis (like individual stocks) making them a better vehicle for inheritance than mutual funds?"
Yes, and yes.
thanks and thanks...maybe I'll spend my kid's inheritance just in case.