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Old 03-11-2024, 10:59 AM
retiredguy123 retiredguy123 is online now
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Quote:
Originally Posted by spinner1001 View Post
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.
I agree, except that there are times when there is a large stock sell-off. In those cases, the ETF manager will be forced to sell stocks to raise cash. My only point is that investors in indexed mutual funds tend to be less inclined to participate in a sell-off. I looked at converting my Vanguard index funds to ETFs, but I did not see a significant advantage to doing so. The expense ratios for both investments are extremely low.