71. ETFs Are Better Than Mutual Funds

That might seem like a bold statement, but it's true. While there are still some instances where traditional mutual funds make sense, ETFs are generally a better, more efficient vehicle for the vast majority of investors out there. Whether you're an individual with a relatively small retirement portfolio or a sophisticated multi-billion dollar endowment, the exchange-traded structure features numerous advantages.

The superior nature of ETFs isn't related exclusively to the cost advantage, though that's certainly a big piece of the puzzle. In addition to the edge in expenses, ETFs offer intraday liquidity (mutual funds simply do not), enhanced transparency (mutual funds are generally opaque), and superior tax efficiency. It's tough to make a good faith argument in favor of mutual funds over ETFs; there are simply too many advantages over exchange-traded products.

Bottom Line: For the average investor, ETFs offer a handful of advantages over comparable mutual funds. 

72. Tax Loss Harvesting With ETFs

ETFs can be useful tools year round, but may become particularly helpful at the end of the year when investors begin to consider ways to reduce tax liabilities. ETFs can be handy tools for harvesting tax losses without dramatically changing the composition or risk/return profile of a portfolio. In other words, investors can sell off a losing fund and reallocate the proceeds to a product with a similar, but slightly different objective.

The opportunities with tax loss harvesting are limitless, though there are some potential restrictions that investors should consider when executing these trades to avoid running afoul of the IRS.

Bottom Line: Tax-loss harvesting with ETFs can help you make the most out of unrealized losses, while still maintaining the desired exposure to the market.

73. AlphaDEX ETFs: Interesting Methodology, Compelling Results

Many investors bifurcate the ETF universe between active and index-based products. In reality, however, there is a significant amount of gray area in between these two types of funds. One example of products that blur the line between active and passive management are the AlphaDEX ETFs offered by First Trust. Though technically passive in nature-they seek to replicate specified indexes-these products certainly have an element of active management as well.