Here we see significant tax savings from the ETFs in many asset classes. Many of the ETF’s had inception dates in 2000 or later. Now, we are looking at periods which include the pre-Bush tax cut years. So, the tax burden on realized long term capital gains was higher.
The ETFs included in this analysis are: Spiders (SPY), iShares S&P 500 Value, iShares S&P 600, iShares S&P 600 Value, iShares EAFE, iShares MSCI emerging markets, iShares Dow Jones REIT, iShares Lehman 7-10 yr. Treasuries, and iShares TIPS. Note: The S&P 500 comparison from inception is actually just for the last 10 years since Vanguard doesn’t have post-tax data from the inception.