Are there tax advantages of ETFs over Mutual Funds?

While there are similarities, there are tax advantages exchange traded funds (ETFs) hold over mutual funds. Both require shareholders to pay any tax due on income, dividends and short-term capital gains. However, shareholders of ETFs are much less likely to be subject to long-term capital gains distributions.

Learn more about the tax advantages of ETFs by reading our recent article Is an ETF Better than a Mutual Fund?