I’ve done my research, and if I understand correctly, there is less capital gain distributed to the shareholders of an ETF than an index fund due to less turnover and less of a need for the fund managers to sell the funds holdings. (Please correct me if I’m wrong)
Now, I’ve just opened up a regular brokerage account with fidelity (not an IRA, just a simple brokerage account), and put about $2k into FSKAX (total market index fund). If I plan to continue to invest in and hold this index fund for years (reinvesting any potential gains), why would an ETF be more tax efficient? Even if I was to open an ETF, any gain would not be cashed out, but held in the account for years to come.
Submitted May 15, 2019 at 01:36AM by _had2 http://bit.ly/2E8jfCm
