ETFs charge a fee for this service based on a percentage of money invested in the fund.For example, in 2022 the average stock index ETF charged 0.46 percent annually, or about $46 for every ...

By transferring $1 million worth of her company’s stock into an exchange fund, Susan could diversify into a range of industries, including real estate and equities.

Exchange fund management expense annual fees: 0.5% Annual fees of comparable index fund: 0.2% To sell and diversify, this hypothetical client would have to pay almost $696,000 in taxes upfront.

Discover how ETFs revolutionize tax-efficient investing. Wes Gray explores SMA to ETF conversions, Section 351 benefits, and the future of tax-aware investing.

Active mutual funds and ETFs had an average asset-weighted expense ratio of 0.59% in 2023, versus 0.11% for index funds, according to Morningstar data. Here's a look at other stories offering ...