A version of this article appeared in the December 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
Generally speaking, exchange-traded funds are more tax-efficient than actively managed mutual funds. This is a consequence of their underlying strategies as well as their novel structure.
Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.