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iShares Template Resdesign
The document outlines six essential strategies for utilizing ETFs, including the importance of catalysts for each idea and the potential tax implications related to the wash sale rule. It emphasizes that the IRS has not clarified the definition of 'substantially identical' securities regarding ETFs, and investors are advised to seek professional tax advice. Additionally, it discusses performance tracking methods and highlights the use of iShares funds for sector rotation and strategic trading.
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iShares Template Resdesign
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- 2. Putting ETFs ToWork: Six Essential Strategies
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- 4. NewTemplate_2006 Agenda Item One Item Two ItemThree Item Four Item Five
- 5. NewTemplate_2006 Agenda Item One Item Two ItemThree Item Four Item Five
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- 7. For every idea thereis a catalyst
- 8. For every ideathere is a catalyst
- 9. NewTemplate_2006 For every ideathere is a catalyst
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- 13. NewTemplate_2006 Title •First level bullet Secondlevel — 3rd level 4th level — 5th level Text: Arial, 26 pt Bold and Title Case Color = iShares Black (0.0.0) Alignment = Left Text: Arial, 22 pt Color = Black Alignment = Left Bullet = None •To call out important conclusions Presentation code: Change through View, Master, Title Master Text: Arial, 7 pt, Regular Color = Black (0.0.0) Alignment = Left SALTS code: Change through text box Text: Arial l, 7 pt, Regular Color = Black (0.0.0) Alignment = Right Text: Arial, 16 pt, iShares Black (0.0.0) Circle Color = iShares Blue Black (0.61.108) Carrot Symbol = White, Arial 18 pt Alignment = Left Text: Arial, 18 pt Color = Black Alignment = Left Bullet = Blue 55% Text: Arial, 16 pt Color = Black Alignment = Left Bullet = Em Dash 65% Blue (0.107.180) Text: Arial, 14 pt Color = Black Alignment = Left Bullet = Blue 50% Text: Arial, 12 pt Color = Black Alignment = Left Bullet = Em Dash 55% Black (0.0.0) 0000-iS-0000 The Internal Revenue Service has not released a definitive opinion regarding the definition of “substantially identical” securities and its application to the wash sale rule and ETFs. The information provided is not intended to be tax advice. Tax consequences will vary by individual taxpayer. Investors should consult a tax professional before engaging in any tax strategy. Text: Arial, 9 pt, iShares Black (0.0.0) Alignment = Left, Bottom Box Size = Horizontal: 0.5, Vertical: 6.7
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- 15. NewTemplate_2006 Table Example Column HeaderColumn Header Column Header Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Text: Arial, 14 pt Bold Color = Black (0.0.0) Alignment = Centermiddle Text: Arial, 16 pt Bold Color = White Alignment = Center/bottom Fill = iShares Cyan (60.169.255) Border Color = Black (0.0.0) Line Style = 1pt 0000-iS-0000
- 16. NewTemplate_2006 Pie Chart 1st item 4th item 5th item 6th item 7th item 8th item 2nd item 3rd item Text: Arial,18 pt Color = Black Alignment = Left 9th item 10th item Chart title, (0/0/00) Text: Arial, 18 pt, Bold Color = Black (0.0.0) Alignment = left 1st item 2nd item 3rd item 4th item 5th item 6th item 7th item 8th item 9th item 10th item Text: Arial, 12 pt Color = Black Alignment = Left 0000-iS-0000
- 17. NewTemplate_2006 Pie Chart (no3-D) 1st item 4th item 5th item6th item 7th item 8th item 2nd item 3rd item Text: Arial, 18 pt Color = Black Alignment = Left 9th item 10th item Chart title, (0/0/00) Text: Arial, 18 pt, Bold Color = Black (0.0.0) Alignment = left 1st item 2nd item 3rd item 4th item 5th item 6th item 7th item 8th item 9th item 10th item Text: Arial, 12 pt Color = Black Alignment = Left 0000-iS-0000
- 18. NewTemplate_2006 Excel Line Chart Charttitle, (0/0/00) Text: Arial, 18 pt, Bold Color = Black (0.0.0) Alignment = left AxisLabel Text: Arial, 14 pt. Bold Color = Black (0.0.0) Alignment =Center Axis: Text: Arial, 14 pt Color = iShares Blue Black (0.61.108) Alignment =Center 40 35 30 25 20 15 10 5 0 0000-iS-0000
- 19. NewTemplate_2006 Excel Line Chart(no 3-D) Chart title, (0/0/00) Text: Arial, 18 pt, Bold Color = Black (0.0.0) Alignment = leftAxisLabel Text: Arial, 14 pt. Bold Color = Black (0.0.0) Alignment =Center 0 10 20 30 40 50 60 70 80 90 100 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Both Axis: Text: Arial, 14 pt Color = iShares Blue Black (0.61.108) Alignment =Center 0000-iS-0000
- 20. NewTemplate_2006 Excel Bar GraphSide-by-side AxisLabelChart title, (0/0/00) Text: Arial, 18 pt, Bold Color = Black (0.0.0) Alignment = left Text: Arial, 14 pt. Bold Color = Black (0.0.0) Alignment =Center 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Both Axis: Text: Arial, 14 pt Color = iShares Blue Black (0.61.108) Alignment =Center 0000-iS-0000
- 21. NewTemplate_2006 Excel Bar GraphSide-by-side (no 3-D) AxisLabel Chart title, (0/0/00) Text: Arial, 18 pt, Bold Color = Black (0.0.0) Alignment = left 0 10 20 30 40 50 60 70 80 90 100 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East West North Color = Black Text: Arial, 12 pt Color = Black (0.0.0) Alignment =Left Text: Arial, 14 pt. Bold Color = Black (0.0.0) Alignment =Center 0000-iS-0000 Both Axis: Color = Black Text: Arial, 14 pt Color = Black (0.0.0) Alignment =Center
- 22. NewTemplate_2006 Excel Bar Graph Charttitle, (0/0/00) Text: Arial, 18 pt, Bold Color = Black (0.0.0) Alignment = left Text: Arial, 14 pt. Bold Color = Black (0.0.0) Alignment =Center 0 5 10 15 20 25 30 35 40 45 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 5th Qtr 6th Qtr AxisLabel Both Axis: Text: Arial, 14 pt Color = iShares Blue Black (0.61.108) Alignment =Center 0000-iS-0000
- 23. NewTemplate_2006 Color Palette Primary iShares BlueBlack 0.61.108 Excelcolor palette iShares Dark Blue 0.61.108 iShares Dark Green 114.191.68 iShares Yellow 255.232.0 iShares Light Blue 101.204.249 iShares Cyan 60.169.255 iShares Dark Orange 251.149.57 iShares Lt. Orange 253.185.19 iShares Gray 165.165.165 iShares Light Green 180.219.10 0000-iS-0000
- 24. NewTemplate_2006 •iShares Funds •Initial Portfolio Side-by-Side Tableand Pie Chart •iShares Funds •Initial Portfolio Column Header Column Header Column Header Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content 0000-iS-0000
- 25. NewTemplate_2006 Side-by-side Pie andBullet List iShares Funds used to rotate among sectors, styles and market cap Use to: Overweight or underweight based on technical, fundamental or quantitative research Actively trade around research, earnings, data or sector calls Seek relative outperformance among asset classes or styles, or among industry sectors Pie 1 Pie 2 0000-iS-0000
- 26. NewTemplate_2006 The Internal RevenueService has not released a definitive opinion regarding the definition of “substantially identical” securities and its application to the wash sale rule and ETFs. The information provided is not intended to be tax advice. Tax consequences will vary by individual taxpayer. Investors should consult a tax professional before engaging in any tax strategy. iShares Funds with similar objective SELL Re-establish position Stock, mutual fund or ETF BUY To realize a tax loss iShares ETFs Tax Strategy: Loss Harvesting 0000-iS-0000
- 27. NewTemplate_2006 Search By FundCategory www.iShares.com > iShares Quick Finder 0000-iS-0000
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- 29. NewTemplate_2006 4.55 4.05 4.55 3.13 2.10 1.72 1.40 1.10 0.85 2.11 2.79 3.19 No content shouldextend past 4.55 on either the left or right side or lower than 3.19 at the bottom. Ideally, all content should remain within the “live area” (noted here with the orange box). 0000-iS-0000
Editor's Notes
- #25 To further diversify this sample portfolio, one might choose iShares funds to complete allocations in small cap, mid cap, real estate and international equity.
- #26 ADDED PIE CHART IMAGE AND UPDATED BULLET 3 iShares funds can be used tactically to add value to a portfolio. This includes overlaying an overweight or underweight of a given asset classes to express a view, as well as rotating completely into and out of asset classes.
- #27 The selling of a security - whether a single stock, an open-end mutual fund or an ETF – to harvest an unrealized loss or avoid a capital gain is a time-tested strategy. The benefits of tax loss harvesting are twofold: not only can a harvested unrealized loss be offset against realized gains in the same portfolio, but the sale proceeds can be reinvested either in a similar position or in a new position. One of the challenges associated with tax loss harvesting is the wash sale provision that prevents an investor from claiming a loss on the sale of stock if that same stock, or a “substantially similar” one, is purchased within 30 days of the sale. The wash sale rule compels many investors to leave the sale proceeds in cash until the position can be reestablished with no penalty. Yet this approach carries at least two risks: one, that the portfolio falls out of line with its strategic asset allocation, and two, that the cash position adversely affects the portfolio’s performance. This slide illustrates a tax loss harvest trade that is structured to mitigate these risks. In this example, after an advisor sells a position to harvest a loss, as depicted by the topmost arrow in the diagram, he purchases an iShares ETF that is highly correlated to the sold position until the 30-day wash sale period expires. This solution maintains the integrity of the portfolio’s asset allocation throughout the wash sale period and avoids the risk of cash drag on the portfolio.
- #28 NEW SLIDE You can search for iShares Funds on ishares.com by category, using the drop down menus to find funds in categories like Market Cap, Value/Growth Style, Fixed Income, International, Sector and Specialty. Each category heading links to the fund’s underlying holdings, performance, and details.