Your tax bracket is your biggest investing advantage. Most people never use it.

Match the same return rate against a public oil & gas ETF and a private oil & gas fund. The 70% year-one IDC deduction is the only difference — and it changes the 5-year outcome materially.

Run your numbers

Investment amount

$100,000

Tax bracket

24%

Annual return rate (applied to both)

15%

Same growth rate drives both the ETF and the private fund. The only difference is the year-one IDC deduction and how those tax savings compound. Current cashflow distributions from the private fund are not included here.

ETF — 5yr after tax

—

Same return, 20% LTCG at exit

Private fund — 5yr after tax

—

Same return + reinvested IDC tax savings

Tax benefit advantage
—
Private fund minus ETF, after tax

Year-one tax savings

—

Investment × 70% IDC × bracket

Year	ETF value	Private fund	Tax savings (reinvested)	Private total	Difference

CALEB EDWARDS · OWN THE EXIT · OAK IQ

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