ProShares has announced that there will be no capital gains distributions on its 77 leveraged and inverse exchange traded funds (ETFs) as well as its fixed-income ETFs in 2009.

A few factors affect the number of capital gains distributions to be paid out at years’ end by ETF shareholders. Factors include the path of the underlying index during the period, the size and timing of asset flows.

The impact is usually minimal in comparison to mutual fund shareholders’ responsibilities. Estimates are different from year to year and information about any fourth-quarter income distributions will be distributed separately. (Do these types of ETFs belong in your portfolio?)

For specific tax guidance, consult your tax professional.

For more stories about long-short ETFs, visit our long-short category.

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.