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ETFs Offer Magic For The Holidays: Freedom From Pass-Through Capital Gains Taxes
FYI: Year end is the perfect time to consider the advantages of the ETF structure over traditional mutual funds. The creation/redemption mechanism that differentiates ETFs from mutual funds and hedge funds allows ETF managers to wash out realized gains. When it works well—when two-way flows are frequent and when portfolio turnover is low—ETFs often pass through zero capital gains to their holders. That’s a fantastic holiday gift. Regards, Ted http://www.etf.com/sections/features-and-news/etfs-offer-magic-holidays-freedom-pass-through-capital-gains-taxes?nopaging=1
