Year-end is approaching and with it comes capital gains distribution announcements for exchange traded funds (ETFs) and mutual funds. ETFs, touted for their tax efficiency, have little or no capital gains for year-end distributions. Mutual funds are flailing, with expectations of big distributions are expected this year.
Last week, WisdomTree announced that year-end distributions for their ETFs are $0 for 38 of 39 funds. The exception to the rule is WisdomTree Total Dividend Fund (DTD) which will pay around $0.01 per share. This announcement really glitters because in a year when actively managed mutual fund distributions are expected to be record high, ETFs have delivered on one of their standout features-tax efficiency.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.