Class notes
Passively managed ETF investors aren't subject to capital gains tax until they sell their shares (big inflows and outflows are handled via in-kind exchanges of stock that are used to establish or redeem shares of the ETF).
- Course
- Institution
Traditional mutual fund investors may be subject to capital gains taxes depending on the fund's activities. When they invest in a fund, they also receive unrealized capital gains earned before they joined. When investors leave the fund, they leave unrealized capital gains behind. Passively managed ...
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