One of my favorite features in Morningstar is the “Tax” tab which allows you to compare the pre-tax return and tax-adjusted returns of mutual funds and ETFs. Many investors never bother to consider the tax-efficiency of their investments, but if you are investing in a taxable account, this is a key consideration.
Over the last several years, my investment approach has become more systematic and disciplined. In place of stock picking or manager selection, I believe clients are better served by a focus on strategic asset allocation. Today, we offer investors a series of 5 portfolio models, using ETFs (Exchange Traded Funds) and mutual funds. This approach offers a number of benefits, including diversification, low cost, transparency, and tax efficiency.