| Is your ETF setting you up for a visit from the tax man? That’s the question Todd Rosenbluth, director of ETF and mutual fund research at S&P Capital IQ, answered. Normally, exchange-traded funds are more tax efficient than mutual funds. Because of low turnover rates and the way ETF shares are created and redeemed limit, ETFs amass fewer capital gains.
So neither the Vanguard 500 Index ETF (VOO) nor the iShares S&P 500 Value ETF (IVE) expects to incur a capital gain this year. But Rosenbluth remarks that some funds do pay capital gains, particularly those tied to fixed income and currency-hedged equities..............................................Full Article: Source
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