Quote:
Originally Posted by retiredguy123
ETF managers are forced to sell shares to raise cash when a lot of investors sell their shares. This creates a taxable event.
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Generally, this is not true. ETFs generally have beneficial tax rules eliminating or reducing capital gains in a sell-off. Details get technical.
Also, ETF investors are buying and selling from each other on a stock exchange. If A is selling 100 ETF shares, the buyer is almost certainly another investor, and not the ETF manager.