It’s often noted that actively managed equity mutual funds are less tax-efficient than equivalent passive equity ETFs/index funds but it’s rarely quantified. We sought to provide some data behind the realized after-tax returns for $1 million invested in a 1) highly ranked equity mutual fund and 2) comparable passive ETF to demonstrate the impact of taxes on total returns and investment gains over the 10 years ending in September 2021. While the pre-tax figures suggest the mutual fund performed better, the after-tax results might surprise you.

RECENT INSIGHTS

April 15, 2024

Key Takeaways The first quarter was a continuation of late 2023, characterized by stronger-than-anticipated growth paired with tamer inflation and...

READ MORE
March 7, 2024

Modest economic growth expectations continue to be surpassed in the S., leading to a broadening ‘soft-landing’ consensus. On the contrary,...

READ MORE
February 8, 2024

· U.S. growth surprised to the upside through 2023 and continues to be on solid footing entering 2024, although vulnerabilities...

READ MORE