Tuesday, December 27, 2005
Why ETFs Produce Lower Tax Bills Than Mutual Funds
Q. You wrote recently that exchange-traded funds tend to trigger lower annual tax bills than index-style mutual funds owning the same stocks. Why is that?
A.: It has to do with the way each type of investment is bought and sold.
When you buy mutual fund shares, the fund company uses your money to buy more shares of the stocks the fund owns. And when you sell your fund shares, those stocks are sold...
BlackEnterprise: Why ETFs Produce Lower Tax Bills Than Mutual Funds
A.: It has to do with the way each type of investment is bought and sold.
When you buy mutual fund shares, the fund company uses your money to buy more shares of the stocks the fund owns. And when you sell your fund shares, those stocks are sold...
BlackEnterprise: Why ETFs Produce Lower Tax Bills Than Mutual Funds
Permalink posted by markw @ 11:53 AM 
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