Indexuniverse has an interesting article on in-cash ETF share creations for muni ETFs as opposed to in-kind creations. The article attempts to explain how in-kind creations can help to eliminate ETFs trading premiums in cases where the underlying securities are relatively illiquid.
The following figure shows the trading premiums of the two types of ETFs.
Clearly allowing [...]
In allocating the asset classes in a portfolio, many “experts” recommend that to keep things simple, it does not make sense to sub-divide the portfolio into anything less than 5%. The usual cited reason is that it complicates the portfolio with very little increase in benefit.
For example, if an asset class has an allocation of [...]
My portfolio is currently allocated as follows:
US LargeCap 11%
US SmallCap 8%
US REITs 4%
US Timber REITs 4%
US MLP (PIK dividends only) 4%
INT EAFE 20%
INT Emerging Market 11%
PreciousMetal Equity 5%
Fixed Income 33%
The ranking of the asset classes, in terms of tax efficiency (based on historical dividends), are as follows (most tax efficient at the top):
US MLPs EEQ [...]
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