Generally, fixed-income ETFs are not as tax efficient as the stock-based funds.

Some bond ETFs will have to distribute capital gains distributions for 2011. Still, most of the distributions are below 1% of the funds’ net asset values. [ETFs and Tax-Loss Harvesting]

A number of ETF providers have announced annual capital gains distributions. Many firms have zero capital gains for their ETFs:

For more information for taxes on ETFs, visit our taxes category.

Max Chen contributed to this article.