Tax Loss Harvesting Strategies with ETFs

Innovation across the exchange-traded universe has brought forth a host of investment strategies to mainstream investors, allowing for access to previously difficult to reach corners of the global financial market. Aside from the well-known benefits of ETFs, like ease-of-use and transparency, the structure of these investment vehicles holds several, often times overlooked, tax benefits as well. Some declines in asset values might have a silver lining, as they present the opportunity for financial advisors and self-directed investors alike to exercise effective tax management and make prudent use of unrealized losses [see 25 Things Every Financial Advisor Should Know About ETFs ].