As the end of the year approaches, investors should focus on capital gains management and explore tax-smart strategies in nonqualified accounts. Active trading can significantly impact capital gains liability and improve after-tax performance. 

Moving investments into exchange-traded funds (ETFs) may offer a tax-efficient solution, with active ETFs presenting a strong option during tax loss harvesting. ETFs have been more tax-efficient than mutual funds due to their unique structure, minimizing capital gains distributions. 

Additionally, actively managed ETFs typically have lower operational costs than mutual funds, providing a more cost-effective investment option. This makes them appealing to investors looking for both performance and tax efficiency as they assess their portfolios.

Finsum: It will be critical with some potential rallies coming on for investors to maximize their tax efficiency and take advantage of the volatility in sectors of the market.