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Episode 057: Dr. Derek Horstmeyer on multiple investment topics, host Rick Ferri

Bogleheads On Investing Podcast

CHAPTER

How to Calculate Tax Efficiency of a Fund

I've always told my students this, well, you know, you should just look to the turnover of a fund and that'll tell you how tax efficient it is. So we kind of took a step back and said: How true is that? Can you just look at the turnover of an actively managed fund or even an index fund? And does that predict how taxefficient it is? And it was pretty much a muddled picture. Some funds were better and some funds weren't, but on average, it was kind of just a wash. You can't really see that with a turnover measure.

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