ETFs are generally tax efficient; most often they have indexed securities with little transactions among their investments. Therefore, at year end they have little taxable charges due to Uncle Sam.
On some occasions they may have to sell assets to adjust their indexes, and taxes result. Mutual funds that are managed, however, buy and sell shares constantly, and are prone to capital gains, especially in rising markets. (See the Earl J Weinreb NewsHole® comments.)
No comments:
Post a Comment