Tax season may not be until April, but investors should be cognizant of their financial positions at the end of the year. Capital gains taxes or write-offs for losses should be considered and balanced before the final trading day of the year. Dividend gains also must be tracked. As with most tax-related things, it complicates quickly. Whether filing yourself or working with an accountant, investors should be aware of strategies to make the most of their gains.

Meb Faber joins Market Overtime to go over some of these strategies. For the last decade, he says that money has flowed to ETFs rather than traditional asset management funds that are “tax inefficient.” With the tenfold market rebound from the bottom of 2009, he warns that many investors are “highly concentrated” in one stock or sector, and then can’t sell because of tax liabilities. To solve this, he proposes a 351 Fund. According to The Tax Advisor, Section 351 allows a tax-free incorporation transfer if certain conditions are met.

To take advantage of Section 351, Faber is launching the Cambria Tax Aware ETF (TAX) in December, which allows tax deferral of some of these capital gains. The fund will contain 100 stocks and have open enrollment. Meb talks about avoiding high-dividend stocks while still matching S&P 500 gains. He goes into detail about how investors can use the fund and the requirements they must meet to join. Watch the full interview below & tune into Schwab Network for more market analysis and investing strategies.

Tune in live from 8 a.m. to 5 p.m. ET, or anytime, anywhere, on‑demand.

Or stream it via thinkorswim® and thinkorswim Mobile, available through our broker-dealer affiliate, Charles Schwab & Co., Inc

Please do not reply to this email. Replies are not delivered to Schwab Network. For inquiries or comments, please email [email protected].

See how your information is protected with our privacy statement. 

Charles Schwab and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions. Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a wholly owned subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.