Hi there,
I'm doing my taxes right now and have noticed that my Vanguard S&P 500 index share ownership did not result in any capital gains/losses.
Although I didn't sell any shares this year, I always hear the downside of index funds is the fact that fund managers occasionally have to sell shares in the event a large group of people attempt to sell their shares. Essentially, there is not enough cash reserved for the fund to buy back the stock, thus the fund needs to sell shares for more cash.
This can lead to capital gain taxes on shareholders who didn't want to sell any shares.
How common is this event that I just described?
Submitted April 01, 2018 at 07:11PM by tomizzo11 https://ift.tt/2IkoMp3
