Ep. 99: Sam Stovall: Building A Portfolio Strategy Around Cyclical Sector Rotation
Investing With IBD
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The Growth of ETFs
ETFs are automatically rotating from defensive stocks to growth stocks based on the seasons. They can buy and sell multiple times during the day, whereas mutual funds are only bought or sold at the end of the day. You could have a down year for a mutual fund but still get hit with a large capital gains tax consequence. Whereas with an ETF, most of the time you have no capital gains exposure at the endof the year.
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