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Subject:  Re: What Are the Tax Advantages (If Any) of ETFs Date:  9/28/2005  10:00 PM
Author:  rkmacdonald Number:  1067 of 2247

Author: theHedgehog | Date: 9/28/05 10:45 AM | Number: 1066
I don't believe that ETFs have had a cap gains distribution issue since 2001 when the article was posted, have they?


I'm sure that there have been some distributions from some funds since the article was written, but certainly not many. In a rising market, with money flowing into most ETFs, there would be little pressure to sell anything. The time when distributions will become more common will be when the market is decreasing, and money is flowing out of the ETFs. Then, sales will have to be made, but not nearly to the extent that regular mutual funds will see.


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