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I've been considering investing in either the Vanguard 500 Index fund, or maybe trying the Foolish Four approach at a discount broker, and I've seen lots of the pros/cons about return, volatility, and sleeping at night, and I think I understand most of that.

However, one thing I have yet to see discussed is how to calculate taxes on these investments at the end of the year. I've heard that investing in the FF is easier when it comes to tax time, because the buy price is clear and profits are easily calculated. How is this different for an index fund? I thought when you invest in a fund, you buy shares that have a value, so its kind of like a stock, isn't it?

Again, I confess to being new at this, any and all help is appreciated.

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