Personal Finance and Investing

One of the main reasons why exchange traded funds have gained so much ground in the recent past is owing to the fact that they are extremely tax efficient. In most cases the dividend distributed by exchange rate of funds are tax free because the corporate tax has already been deducted prior to paying dividend. Exchange traded funds only have one tax issue. This is when consumers sell their funds. If the funds sold at a profit consumers are liable for capital gains taxes.

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