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EWX

The year-end periods provides the ETF industry with a couple of opportunities to flex its collective muscle; performance comparisons generally tend to favor those products with lower expense ratios–a defining feature of exchange-traded funds. But early January also puts another benefit of exchange-traded products into focus: enhanced tax efficiency relative to traditional mutual funds. The nuances of the exchange-traded structure have the potential to bring additional tax efficiencies to investors thanks to the availability of an “in kind redemption” that ultimately gives investors more control over the timing of tax obligations. Mutual funds, on the other hand, have a nasty tendency to stick remaining shareholders with tax liabilities incurred as a result of redemptions by others–a development that can obviously be undesirable [see Tax Loss Harvesting With ETFs: 6 Ideas To Lower Client Liabilities].

ETFs won’t allow investors to skip out on their taxes, but this product structure can deliver more control and greater efficiency in this regard. It is important to note, however, that not all ETFs are created equal when it comes to tax efficiency. Certain asset classes are less efficient than others; bond ETFs, for example, should be expected to incur capital gains taxes with some regularity.

Below, we run through the capital gains results for several of the largest ETF issuers, beginning with the market leader: [click to continue…]

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For most investors, 2011 was a frustrating year; after some strong early gains seemingly pointed to a continuation of the recovery that took root in 2010, the appearance of some major obstacles sent many major indexes back towards negative territory. The impressive late December rally closed the year on a high note, but there is no doubt room for improvement in 2012 as many attempt to return their portfolios to pre-recession valuations.

The continued innovation and growth in the ETF industry in 2011 has given investors more tools in the toolkit than ever before, and it has made easier to maintain portfolios of all degrees of sophistication using only exchange-traded products. For those looking to take more control over their portfolios in the new year, we highlight ten tips that can enhance your ETF experience and help you get the most out of the robust lineup of exchange-traded products [sign up for a free 7-day trial of ETFdb Pro to get access to more than 30 all-ETF model portfolios]: [click to continue…]

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A quick look at the headlines on any given day is generally enough to explain why investors have been shifting greater percentages of their long-term portfolios towards emerging markets in recent years. The U.S. is grappling with elevated unemployment, and faces a regulatory gridlock that is creating undesirable tax uncertainty. Europe has been unable to [...]

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iShares, the market leader in the U.S. ETF industry, rolled out a complement to its ultra-popular MSCI Emerging Markets Index Fund (EEM) on Thursday. The recently launched MSCI Emerging Markets Small Cap Index Fund (EEMS) will offer exposure to small cap companies in developing economies by seeking to replicate an index comprised of stocks that [...]

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The developments of the last several years have highlighted the growing gap between the developed and emerging markets of the world. Advanced economies in North America, Europe, and Asia face mounting debt burdens and the prospect of a prolonged stretch of low economic growth. Meanwhile, many emerging markets have raced ahead, boasting blistering GDP growth [...]

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Today marks the first day of trading for the Market Vectors Russia Small-Cap ETF (RSXJ), the first exchange-traded product offering U.S. investors exposure to small cap Russian stocks. The new fund from Van Eck will seek to replicate the performance of the Market Vectors Russia Small-Cap Index, a benchmark that includes about 35 small cap [...]

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Van Eck, the New York City-based issuer known in the ETF world for funds offering exposure to hard assets and emerging markets, continues to get creative in its product development efforts. In recent SEC filings the company detailed plans for a small cap emerging markets ETF and an ETF that invests in closed-end funds, putting [...]

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When considering the equity allocation of an investor portfolio, perhaps the most common bifurcation made is between developed and emerging markets. The distinction between developed and emerging markets has become a hot topic in recent years thanks to the tremendous gaps in growth and risk between the two groups. As developed markets have struggled to [...]

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State Street rolled out two new ETFs on Thursday, launching products offering exposure to emerging markets equities and fixed income securities. The SPDR Barclays Capital Emerging Markets Local Bond ETF (EBND) will seek to replicate a benchmark consisting of fixed-rate local currency sovereign debt of emerging market countries, while the SPDR S&P Emerging Markets Dividend [...]

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In recent years, emerging markets have been established as the clear leaders of global GDP growth, while the economies of the U.S. and western Europe have stalled. Developed markets are facing stubbornly high unemployment and limited flexibility thanks to mounting debt burdens, while emerging markets continue to race ahead. In a recent economics paper, Goldman [...]

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With 2011 just around the corner, tis the season for pledges to better everything from health to wealth to happiness in the coming year. Below, we offer up ten New Years’ Resolutions for ETF investors looking to cut expenses, round out their portfolios, and maximize returns in 2011 [for more ETF insights, sign up for [...]

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When rattling off the advantages that ETFs hold compared to traditional actively-managed mutual funds, most investors usually start with the issue of expenses. The easiest comparison to make involves expense ratios, the fees charged by ETF and mutual fund companies for investing in a product. Though some mutual funds offer single-digit expense ratios, most actively [...]

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