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Is it a good idea to hold ETFs in a taxable investment account?


If not, what securities are the best for this type of account (not IRA)?

I consider buying index ETFs. Or is it better to buy index mutual funds for this kind of acount?

Yes.
ETFs are very tax efficient, and provide a low cost way to build a diversified portfolio.

Because ETFs are traded like stocks, there is a commission every time you buy or sell. For this reason, if you are adding money monthly or quarterly, a mutual fund may be a better choice.

It's fine. Holding ETFs is no worse than holding stock. They're taxed similarly, at least in the short term.

What you might consider is holding LEAPS on ETFs instead. These are taxed at 60/40.

The most important thing is to select the right ones! Whether you have Japan or Germany, or the Russel or Nasdaq, or sectors such as retail/technology, you just want to be sure to have the right mix in your portfolio.

Holding on to energy/oil holders/ETFs will make the tax issue moot if it just loses you money, right?

Hope that helps!

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