Question about this....when you recommend converting an SMA into an ETF to defer taxes wouldn't that only be attractive if the ETF had a lower expense ratio than the SMA? Generally direct index strategies are 20bps and lower....these ETFs look like they have expense ratio are much higher than that. I could see converting an expensive active SMA but not a direct index. Am I wrong about that?
To be clear, I don't make recommendations. But I think you're right to think about cost, and other tradeoffs, including tax and risk profile, in investment decisions.
Question about this....when you recommend converting an SMA into an ETF to defer taxes wouldn't that only be attractive if the ETF had a lower expense ratio than the SMA? Generally direct index strategies are 20bps and lower....these ETFs look like they have expense ratio are much higher than that. I could see converting an expensive active SMA but not a direct index. Am I wrong about that?
To be clear, I don't make recommendations. But I think you're right to think about cost, and other tradeoffs, including tax and risk profile, in investment decisions.