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Little Tax Pain for ETF Investors This Year

Adam McCullough, CFA (adam.mccullough@morningstar.com)

Exchange-traded funds are generally touted as tax-efficient fund structures. 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.