Smart Collections are groups of related items. They may share the same tags, the same item type, or similar names.
Unlike locations, Smart Collections don't actually hold any items. Rather, they act like smart playlists in iTunes—they contain references to items, rather than the items themselves.
Because Smart Playlists contain all items matching certain criteria, they are auto-updating. If you create a collection for items tagged as Valuable, for example, then any future items that you add that tag too will automatically be added to the smart collection.
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