Furthermore, investors who own asset-backed ETFs own an “undivided interest in the actual metal that’s owned by the fund,” which means that if an ETF sells some hard assets to pay off costs, the gains or losses flow to the investor even if the investor doesn’t receive any distribution or cash. The result can be a K-1. (How to handle a K-1).
We are not tax experts and this should not be construed as advice. Investors should consult their tax professionals for additional details and information on how to proceed.
For more information on taxes, visit our tax category.
Max Chen contributed to this article.