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  • bee August 2015
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NBER: Tax-Efficient Mutual Funds Also Do Better Before Taxes

ibartman
edited August 2015 in Fund Discussions
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Pursuing trading and investment strategies that could limit investment opportunities does not appear to lower average pre-tax returns.

In Tax-Efficient Asset Management: Evidence from Equity Mutual Funds (NBER Working Paper No. 21060), Clemens Sialm and Hanjiang Zhang investigate the performance of U.S. equity mutual funds that are "tax efficient" in the sense of following investment and trading strategies that minimize tax burdens on taxable investors.

The study finds that tax-efficient funds have tended to outperform other funds with respect to both before-tax and after-tax returns.
Source: NBER Digest | Aug 2015 | Jay Fitzgerald | http://www.nber.org/digest/aug15/w21060.html

PowerPoint: http://faculty.mccombs.utexas.edu/Clemens.Sialm/SZ_Seminar.pdf

Paper (SSRN Feb 2014): http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2368625

Comments

  • beebee
    edited August 2015
    One I use is USBLX which I often try to compare to VTMFX. Two great Conservative Allocation performers... both before, and after the tax man cometh.

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