Approach and framework make ETFs much more tax-effective than most actively managed resources, but they are not immune from taxation, states Morningstar’s Ben Johnson.
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Just How Tax Efficient are ETFs?
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One Comment on “Just How Tax Efficient are ETFs?”
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so basically….
they both have the same tax rules, except a mutual fund sells equities more often than an ETFs- that mainly transfers equities. as we kno u sell an equity you pay tax.
question though- would you say an etf will also have a better chance of falling into long term capital gains than a mutual fund?