Taxes investing earnings beat forecast in the

Earnings beat forecast in the semiconductor sector, revitalizing taxes investing discussions. Tax-efficient reinvestment in high-growth chipmakers could yield double-digit returns for 2024 portfolios. The EV tax credits changed the calculus for purchasing these vehicles. Many consumers saw the tax incentives as a mechanism to acquire an EV since it substantially lowered the after-tax costs relative to other vehicles. As demand rose due to the lower cost, producers of the EVs ramped up production and enhanced their products. The entire car industry has been upended by newcomers, such as Tesla and Rivian, which offer fully electric vehicle options at prices not much different than their counterparts in gas-powered vehicles. Other manufacturers, like Ford and General Motors, and luxury brand vehicles like Audi and BMW, have increased manufacturing and sales of EVs. One area where the benefits of active management have been clear is in international equity markets, which have experienced a significant shift in 2025, driven by geopolitical dynamics and changes in U.S. policy. Non-U.S. markets (primarily Europe), emerging markets, and Japan, have outperformed U.S. markets, which were previously dominated by large-cap growth stocks. With a potential regime change away from U.S. exceptionalism, some global investors have actively sought new opportunities. Active managers are well positioned to help identify quality companies and regions that emerge from this shift. For example, the T. Rowe Price International Equity ETF (TOUS) has exceeded the returns of the MSCI EAFE Index Net by over 4% 1 over the last year (Figure 2). Recent market reports show that taxes investing strategies are increasingly influencing equity portfolio flows. With corporate earnings season underway, analysts forecast sectors like tech and renewable energy could see 8–12% growth in Q3, especially for investors optimizing post-tax returns.