From Active to Passive: How Investors Can Transition Tax-Efficiently
Maybe an active manager is underperforming the benchmark. Maybe the client has a large appreciated or concentrated position and seeks diversification to reduce risk. Or maybe they just want broader market exposure than they’re currently getting. The reasons may be many, but as greater numbers of investors seek to be the market rather than beat it, the challenge for many advisors is how to shift funds from actively managed portfolios to a passive allocation without triggering an avalanche of realized capital gains.
This short video shows you how the process works—and why, for your tax-sensitive clients, broad market exposure via an SMA may be the better choice over an ETF.