Some of our strategies are more active, as such they can have different tax implications associated with it versus your traditional buy-and-hold approach. An investment held for less than one year is often taxed as ordinary income, and investments held for longer than one year are often taxed at capital gains rates (typically less than ordinary income rates but varies depending on the individual). Some of our strategies may generate ordinary income tax status but we still believe the benefits of a dynamic portfolio outweigh the potentially higher tax implications. If an investment is out of favor, holding on to it for tax reasons can be extremely costly if that investment continues to decline. Sometimes the better long-term decision is to sell it and realize the taxes that year.
 Wallick, Daniel; Shanahan, Julieann; Tasopoulos, Christos; Yoon, Joanne, “The Global Case for Strategic Asset Allocation”, Vanguard Research, July 2012
 According to S&P Dow Jones. Time period was 2005 - 2014