This article is part of Morningstar's Guide to Passive Investing special report.
While equity exchange-traded funds have a clear edge over actively managed stock funds on tax efficiency, the picture is slightly different for fixed-income funds. Here, I'll discuss some of the important issues investors should keep in mind when assessing the tax efficiency of fixed-income ETFs.
Phillip Yoo, CAIA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.