ilmscore | Prediction Details
"with an index fund you could owe taxes without ever selling a single share that's because when other investors cash out of an index fund the fund manager sells shares in the fund and the tax consequences are passed on to every investor in the fund with an ETF you're typically selling your shares to another investor therefore ETFs are considered more tax efficient because of their structuring however this may not matter if you're buying an index fund in a retirement account but please take this into consideration if you're using a taxable brokerage account"
By ClearValue Tax | April 7, 2023 | Pending
From video
Index Funds For Beginners — The Best Stock Market Investment 00:11:24 - 00:11:59
Interpreted Prediction
ETFs are considered more tax-efficient than index funds in taxable brokerage accounts because their structure involves selling shares to other investors, thus avoiding the pass-through of capital gains taxes to all fund holders when other investors cash out.

Prediction Details

Topic
Index Fund vs. ETF Taxation

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