A 28-year-old investor, aiming to build a $2 million retirement portfolio within eight years, has shifted his investment strategy to focus on tax-advantaged ETFs. The investor, who previously relied on traditional index funds, is now leveraging ETFs that offer high yields and tax benefits. One such ETF, highlighted in the article, pays an annualized yield of 14%, significantly higher than traditional index funds.

The investor’s decision is driven by several factors:

1. **Tax Efficiency**: Tax-advantaged ETFs can help reduce tax liabilities, allowing investors to keep more of their earnings. This is particularly important for long-term investors who aim to grow their wealth over time.

2. **Higher Yields**: The 14% annualized yield offered by these ETFs is significantly higher than traditional index funds, providing a more attractive return on investment.

3. **Diversification**: The investor is diversifying his portfolio by including ETFs that offer exposure to different asset classes, such as real estate, commodities, and fixed income. This helps to mitigate risk and maximize returns.

4. **Long-term Growth**: By focusing on tax-advantaged ETFs, the investor is positioning himself for long-term growth and stability. These ETFs often have a lower correlation to traditional market indices, providing a more balanced portfolio.

5. **Ease of Management**: Tax-advantaged ETFs are designed to be easy to manage, with low fees and minimal trading required. This simplifies the investment process and allows the investor to focus on other aspects of his financial plan.

Overall, the investor’s strategy is centered on maximizing returns while minimizing tax liabilities, making it a compelling approach for those looking to build a substantial retirement portfolio.