FYI: Index funds' low turnover generally makes them more tax-efficient versus actively managed funds, which tend to have higher turnover. But not all index funds are equal. Indeed, many have been distributing regular and sizable capital gains in recent years. These funds can teach us important lessons about the forces that drive funds' tax efficiency. Their recent track record raises questions about potential tax issues faced by other funds--Vanguard exchange-traded funds in particular.
Regards,
Ted
http://www.morningstar.com/articles/856209/zombie-index-funds-are-delivering-frightening-tax-.html
