2.5 – 3.0 percent
Fixed Income ETFs
0 – 0.15 percent
0.15 – 0.3 percent
Source: Morningstar data as of December 31, 2014
Part of this is due to the ETF creation/redemption process, which is more tax efficient than the cash subscription/redemption process used by most mutual funds. Additionally, a skilled ETF portfolio manager will work to minimize cap gains occurrences in the fund throughout the year.
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