muscleman Posted December 13, 2018 Share Posted December 13, 2018 I am curious about active ETFs which try to beat the stock index. They will be actively buying and selling stocks and generate capital gains. What will happen to shareholders of this ETF? If capital gain is not distributed to shareholders for tax purposes but instead keep compounding in the fund, I double IRS would allow this to happen. But if it is distributed to shareholders, will shareholders be able to know what portion is long term gain and what portion is short term gain and get different tax rates accordingly? Link to comment Share on other sites More sharing options...
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