When you strip the noise away, the real question is simple: not all capital gains are created equal: short-term gains can cost twice as much as long-term ones. Three quick checks before you act: 1. Name the mechanism in plain English: The tax system distinguishes between holding periods. Short-term gains are taxed as ordinary income; long-term gains get a preferential rate. 2. Say why it matters for behavior or portfolio decisions: That difference can turn a mediocre pre-tax strategy into a losing after-tax strategy if turnover is too high. 3. Set the review question: Write down the state variable you would monitor first if this thesis started to drift. Market translation: A fund that turns over 100% annually may lose 1-2% per year to excess taxes compared to a similar exposure with lower turnover. Failure mode: The mistake is comparing strategies on pre-tax returns without adjusting for the tax drag created by each strategy's turnover. That is usually where the edge is: not in the vocabulary, but in the structure underneath it.