Re: Tax Efficient Investing
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The idea was that any time you put restrictions on something (making it tax efficient adds a layer of restrictions) it can't make it better and it often makes it worse (or else the non-tax managed would be doing the same thing).
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The idea doesn't make any sense. You're assuming the non-tax managed funds are perfect and that any deviation from them is inefficient. Some indeces are demonstrably inefficient: S&P 500, Russell 2000 -- both have negative alpha due to index reconstitution arbitrage. Index Fund managers slavishly follow the indeces anyway to avoid tracking error. Tax managed funds that loosely track those indeces will tend to outperform them.
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