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URL:  https://boards.fool.com/and-there-may-be-some-tax-inefficiencies-due-to-20775581.aspx

Subject:  Re: Rydex equal weight S&P ETF Date:  5/16/2004  4:15 PM
Author:  rookieJoe Number:  41016 of 93697

and there may be some tax inefficiencies due to the quarterly rebalancing

Buzman,

Can you be more specific? ETFs have extremely low taxable distributions because they exploit a tax loophole for "in kind" trades. Rebalancing within an ETF is almost always not a taxable event. Is there some reason why this ETF does not or can not do this?

thanks,
Joe
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