In perhaps one of the most confusing yet least talked about elements of the asset management industry, the concept of “yield” can be a particularly difficult conversation to have. Particularly in fixed income, where investors conceivably buy a bond fund for income, many advisors care about one number and one number only: “What is the yield?”
Tax efficiency is one of the prime benefits of exchange-traded funds (ETFs), and I expect this tax reporting season to accentuate the benefits of the ETF structure.
As investors spend the month of December deciding how to approach 2014, it is important to remember all the benefits that ETFs offer. Investors of all sizes have access to the same valuable information to help them with the due diligence and decision-making process.
It is important for investors who are utilizing exchange-traded funds (ETFs) to understand all the market participants that exist in the ETF marketplace. It doesn’t matter if you are an individual investor or an institutional investor, understanding the ETF capital markets landscape is important to navigating the ETF market efficiently.