Podcast Center
Video Center
Webcasts
Resource Center
Events
By 
January 18, 2022 at 04:41 PM
Related: 10 Social Security Tax Facts to Know
Exchange-traded funds possess characteristics of traditional mutual funds, which issue redeemable shares, and of closed-end investment companies, which generally issue shares that trade at negotiated market prices on a national securities exchange and are not redeemable.
ETFs are thought to have certain benefits compared with traditional mutual funds, including lower expense ratios and certain tax efficiencies and allowing investors to buy and sell shares at intraday market prices. Investors can also sell ETF shares short, write options on them, and set market, limit, and stop-loss orders on them. ETF shares can be bought on margin.
Are you advising your clients correctly when it comes to their investments in ETFs? See the gallery for 14 important tax and financial planning questions and answers advisors should be aware of regarding ETFs and taxation rules around this investment vehicle, according to ALM’s Tax Facts Online.
(Graphics: Chris Nicholls/ALM)
___________________
- Learn more with Tax Facts, the go-to resource that answers critical tax questions with the latest tax developments. Online subscribers get access to exclusive e-newsletters.
- Discover more resources on finance and taxes on the NU Resource Center.
- Follow Tax Facts on LinkedIn and join the conversation on financial planning and targeted tax topics.
- Get 10% off any Tax Facts product just for being a ThinkAdvisor reader! Complete the free trial form or call 859-692-2205 to learn more or get started today.
Slideshow
