Tax Efficiency

Filed Under »
Dictionary Says

Definition of 'Tax Efficiency'

An attempt to minimize tax liability when given many different financial decisions. There is a wide variety of tax-efficient vehicles, including tax-efficient mutual funds, irrevocable trusts and tax-exempt commercial paper.
Investopedia Says

Investopedia explains 'Tax Efficiency'

Choosing the best tax-efficient investment can be a daunting task for those with little knowledge of the different types of products available. The best decision may be to contact a financial professional to determine if there is a way for you to make your investments more tax efficient.

Related Definitions

Search results for

'Tax Efficiency'

  • Beginner's Guide To Tax Efficient Investing

    http://www.investopedia.com/articles/stocks/11/intro-tax-efficient-investing.asp
    ... Tax efficiency is essential to maximizing returns. ... See The REIT Way.) Bottom
    Line Tax-efficiency is within reach of most investors. ...

  • Minimize Taxes With Asset Location

    http://www.investopedia.com/articles/tax/08/asset-location.asp
    ... as exchange-traded funds (ETFs), are valued for their tax efficiency and should
    also be held in taxable accounts, as should tax-free or tax-deferred bonds. ...

  • How To Reduce Taxes On ETF Gains

    http://www.investopedia.com/articles/exchangetradedfunds/08/etf-taxes-introduction.asp
    ... November 27 2010 | Filed Under ยป 401K, ETFs, Taxes. Investors seeking to beat the
    market should look to exchange-traded funds (ETFs) for their tax efficiency. ...

  • Active ETFs: Higher Cost Vs. Added Value

    http://www.investopedia.com/articles/exchangetradedfunds/08/active-ETF.asp
    ... The ETF structure, by design, provides investors with lower expenses, tax efficiency,
    fund transparency, liquidity and trading flexibility. ...

  • Subaccounts: As Good Their Clone Funds?

    http://www.investopedia.com/articles/mutualfund/09/subaccounts-or-mutual-funds.asp
    ... own ticker symbol. Although some are managed for tax efficiency, they are
    not inherently tax-deferred vehicles. (Learn more on mutual ...

  • Actively Managed ETFs: The New Mutual Funds?

    http://www.investopedia.com/articles/exchangetradedfunds/09/actively-managed-etfs-evolution-continues.asp
    ... investors should consider. The growing interest in active ETFs raises particular
    concerns regarding tax efficiency and costs. One of the ...

  • Uncovering The ETF Wrap

    http://www.investopedia.com/articles/mutualfund/05/ETFwrap.asp
    ... out of their ETF holdings. On the tax efficiency front, ETFs are also superior
    to mutual funds. New investors do not inherit embedded ...

  • Making Sense Of Cash And Shorts

    http://stocks.investopedia.com/stock-analysis/2008/Making_Sense_Of_Cash_And_Shorts_TFSMX_WASAX_VMNFX.aspx
    ... neutral fund that was given the same high rankings on the Lipper Leader Scorecard
    as the VMNFX fund with and additional 5-out-of-5 score for tax efficiency. ...

  • An Introduction To Sector ETFs

    http://www.investopedia.com/articles/exchangetradedfunds/08/sector-etfs.asp
    ... It is important to note that more rebalancing will lead to higher transaction costs
    and lower tax efficiency, since the stocks with the greatest gains have to ...

  • The Simple Tax Math Of Roth Conversions

    http://www.investopedia.com/articles/retirement/08/roth-conversion-2010.asp
    ... However, our focus here is on tax efficiency. Congress has made this comparison
    simple by creating tax neutrality between the two choices. ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links