Welcome to December, the time of year when investors cozy up next to the fireplace with hot cocoa to reflect on the year, resolve to better themselves, and evaluate the tax consequences of their investment decisions.
Investors in exchange-traded funds can be thankful that these funds' structure is, generally speaking, more tax-efficient than traditional open-end mutual funds. As Morningstar ETFInvestor editor Ben Johnson discussed in "Declare the Pennies on Your Eyes" in the November 2015 issue, ETFs' inherent tax efficiency has two primary sources: 1) strategy and 2) structure.
Adam McCullough, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.