Everything on Tax Efficiency

Realizing capital gains to rebalance a portfolio is often inefficient. Redirecting new contributions to alternative asset classes achieves the same diversification goal without triggering immediate tax liabilities.

Impact: Preserves the compounding effect of existing holdings, allowing investors to adjust risk exposure more smoothly and cost-effectively over time.

— from Indexing Strategy, Equal Weight Risks, and Tax Optimization · Asset Class· Mar 10, 2026