FYI: Exchange-traded funds are generally touted as tax-efficient fund structures. In early November, Morningstar’s Christine Benz highlighted the largest estimated capital gains distributions among mutual funds in 2018. Most fund families have at least one mutual fund that’s expected to stick fundholders with capital gains distributions of more than 10% of the fund’s net asset value. Compared with actively managed mutual funds, ETFs are set to disburse fewer meaningful capital gains this year. Only two ETFs from the largest fund sponsors are expected to distribute capital gains distributions of greater than 10%. And most ETFs are not expected to distribute any capital gains.
Regards,
Ted
https://www.morningstar.com/articles/903830/little-tax-pain-for-etf-investors-this-year.html
