• Investors and advisors often underestimate the impact that taxes have on investment portfolio returns – but tax-efficiency can also be difficult to measure.
  • This study compares the results of pairs of accounts in which one uses tax-management techniques and the other does not.
  • Tax management techniques include tax loss harvesting, short-term gain deferral, optimal tax lot selection and avoiding wash sale rule violations.
  • Comparative results are highlighted over a 10-year period, with performance breakouts shown for each calendar year.