How Muni-Bond ETFs Help with Tax-Loss Harvesting

Dec 21, 2023

Courtney Wolf, muni portfolio manager at Capital Group, discusses the benefits of tax-loss harvesting via active fixed income ETFs. They explore investing in portfolio construction, the advantages of the active Muni ETF CGMU, and the construction and positioning of CGMU. They also address volatility in the bond market and the benefits of active ETFs in the municipal sector.

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Introduction

00:00 • 4min

Investing in Portfolio Construction and the Macro Environment

04:01 • 1min

Active Muni ETF and Tax-Loss Harvesting

05:30 • 3min

Construction of CGMU, Long Duration Positioning, and Active View on Sectors

08:05 • 3min

Volatility in the Bond Market: Opportunities and Strategies

11:06 • 6min

As 2023 is nearing its end, tax-loss harvesting season is in full swing. This is often top of mind for advisors and their clients. But Capital Group is seeing some advisors hesitate to harvest losses due to ongoing volatility in the equity and bond markets, and general uncertainty about 2024.

My guest, Courtney Wolf, joins me today to talk about why to deploy cash and use tax-loss harvesting via active fixed income ETFs. Courtney is a muni portfolio manager at Capital Group and the principal investment officer for the firm’s active muni ETF, CGMU. With nearly two decades of muni investing experience, Coutney will offer her forecast for munis more broadly in 2024 as well.

Here is a link for more information about Capital Group and its resources on active ETFs and tax loss harvesting:

Meet the suite: Get to know Capital Group's ETFs- https://www.capitalgroup.com/advisor/investments/exchange-traded-funds/resources/meet-the-suite.html
Capital Group Municipal Income ETF- https://www.capitalgroup.com/advisor/investments/exchange-traded-funds/details/cgmu
Active ETFs to pursue more control over your clients' tax liabilities- https://www.capitalgroup.com/advisor/investments/exchange-traded-funds.html?cid=p73043655040&ad_id=620524608858&ext_id=&ds_rl=1292280&gclid=CjwKCAjwg-GjBhBnEiwAMUvNWzh8XQRd_WZ2v1JKROrAAb3gOQL6II-7iVU0RLtEZFtlAW8qDkFNkxoCtxMQAvD_BwE&gclsrc=aw.ds
5 ways to pursue greater tax efficiency with ETFs- https://www.capitalgroup.com/advisor/investments/exchange-traded-funds/resources/5-ways-to-pursue-greater-tax-efficiency-with-etfs.html
Capital Ideas Insights – How to harvest tax losses in pursuit of portfolio efficiency- https://www.capitalgroup.com/advisor/investments/exchange-traded-funds/resources/tax-loss-harvesting-improved-efficiency.html
Capital Group 2024 Outlook- https://www.capitalgroup.com/advisor/insights/webinars/2024-outlook.html

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.