Active Tax Management November 29, 2017
An enormous body of academic finance literature discusses the pre-tax performance of public equity factor tilts, but almost nothing measures the impact of taxes on taxable asset owners. Pete Hand, Aperio’s Director of Quantitative Strategies, has remarked over the years that...
Active Tax Management October 19, 2017
In 1979, Daniel Kahneman and Amos Tversky published "Prospect Theory: An Analysis of Decision Under Risk." Regarded as perhaps the seminal paper in behavioral economics, the article’s central idea is that “losses have more emotional impact than an equivalent amount of gains”...
Observations July 25, 2017
Morningstar Inc. estimates that between 2013 and 2016, investors added nearly $1.3 trillion to passive mutual funds and exchange-traded funds (ETFs), and pulled more than a quarter trillion out of active funds. There is a lot of talk about...
Observations by Lisa Goldberg June 1, 2017A Cornucopia of Losses: The US Equity Market Has Been Great for Taxable Indexers but Hard on Active Managers
Critics are quick to point out that active management is a sub-zero-sum game. The high fees active managers charge make after-fee active returns lower, on average, than after-fee returns to an exchange-traded fund (ETF) that tracks...
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