Behind the Scenes of Your Portfolio: ETF & Mutual Fund Research & Monitoring
For many investors, once they have made a decision to purchase an ETF or mutual fund, they tend to breathe a sigh of relief and move on. Although there needs to be significant upfront due diligence in selecting investments, we do not recommend blindly trusting that the managers remain consistent, nor that the specific investments continue to fit into your portfolio. One important ongoing aspect of investment management is to ensure the investment vehicles recommended remain as high conviction as when we first recommended them.
Behind the Scenes of Your Portfolio: Taxes & Asset Location
Often overlooked when thinking about your portfolio are the different ways that taxes are generated, based upon the type of accounts that own various asset classes. According to the “Vanguard Advisor’s Alpha” framework study from August 12, 2022, just by optimizing the location that different asset classes are held can add up to 0.60% annually in higher after-tax returns for investors!