You can say this, at least, about 2020: it hasn’t been boring.
This past week may have been the most head-spinning, since at least the one before that. It included formal confirmation from the U.S. government that Joe Biden’s transition to president would begin, and a third promising COVID-19 vaccine candidate. Not to mention the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.57% hit a fresh record, bursting through what’s often called a “psychological milestone” at 30,000 .
The ETFs that caught our attention in the past week ranged from the lockdown trade to bets on moving goods around the globe . We covered funds that feature the year’s biggest stock gainer, and those with arguably the year’s biggest oxygen-sucker.
Yet another example: among our five best performers of the past week, found below, there’s one clean-energy ETF and three devoted to fossil fuels.
All that in only four trading days rather than our usual five.
Happy Thanksgiving, thanks for reading, and get ready for more 2020 next week.
‘Tis the season for getting ready to roast a turkey and watch too much television — not typically the time for filing tax returns. Still, for ETF investors, it may always be the right time for giving thanks for the lower tax burden of these investment vehicles, at least when compared to mutual funds.
Research firm CFRA in mid-November released an analysis of what ETF “tax benefits” meant in practice this year. Based on initial estimates, 94% of the ETFs from BlackRock, State Street Global Advisors and Vanguard will not incur any capital gains for investors. Those asset managers, often known as “ The Big Three ,” together account for 81% of all ETF assets under management, CFRA notes.
Among equity ETFs, one of the funds with the largest anticipated capital gain is iShares Evolved U.S. Innovative Healthcare ETF /zigman2/quotes/210542147/composite IEIH +0.61% . It’s an actively-managed sector-tracking fund, and it’s expected to pay out capital gains between 53 and 65 cents a share, equal to a range of 1.7% and 2.1% of its net asset value, or NAV.
Overall, fixed-income ETFs are more likely to incur capital gains for investors than stock funds are, CFRA points out.
Nope, there’s no Thanksgiving ETF. But in true All-American fashion, there are a bunch of random themes that can be cobbled together to make a happy, bespoke, extended-family portfolio. Here’s a key to the graphic above.
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