What Kinds of ETFs Are Making Capital Gains Distributions This Year?
A look at the exchange-traded funds and providers that have announced projected capital gains distributions thus far.
For investors, one of the most appealing aspects of exchange-traded funds is their clear tax efficiency.
To start with, many passive funds inherently are low-turnover vehicles, with a minimal amount of concentrated buying and selling of specific securities. In addition, because ETFs have the ability to redeem securities in-kind, their managers often can dodge the capital gains bullet by swapping out low-cost-basis securities without having to realize large amounts of capital gains, if any.
Robert Goldsborough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.