Tax-aware investing, often overlooked, can significantly enhance portfolio performance by adding 1% to 2% in annual after-tax returns through strategies like tax-loss harvesting. This approach, known as tax alpha, generates extra returns by implementing tax-efficient strategies compared to standard portfolios. Research and Alphathena’s analysis confirm consistent tax-loss harvesting opportunities, even in strong markets, making it a valuable strategy across various market conditions for maximizing returns and achieving financial goals.