FYI:
Tax-managed mutual funds may simply be closet indexers, and expensive faux trackers at that.
That’s according to a study of U.S. equity mutual funds classified as tax-managed, meaning they attempt to add value by both active management and keeping taxes at bay.
“They don’t really do all that much better in terms of being tax efficient,” said David Nanigian, of The American College and co-author of the study with Dale Domian of York University and Philip Gibson at Winthrop University.
“Even when the tax burden is lower, the incremental expenses charged by these funds above and beyond passive counterparts vastly exceed any incremental tax savings that they offered.”
Regards,
Ted
http://www.reuters.com/article/us-markets-saft-idUSKBN0TS2WZ20151209#YxCPgG3E12RCEKpv.97
