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:
- AdvisorShares
- Deutsche Bank‘s db-X
- Direxion
- FirstTrust
- Global X
- Guggenheim
- IndexIQ
- iShares
- PIMCO
- PowerShares
- ProShares
- RevenueShares
- Russell ETFs
- Rydex|SGI
- Schwab
- State Street Global Advisors
- Van Eck Global
- Vanguard
- WisdomTree
For more information for taxes on ETFs, visit our taxes category.
Max Chen contributed to this article.