Tax consequences can be significant and are often underappreciated. In 2018, 62% of mutual funds paid capital gains distributions resulting in tax liabilities while 5% of ETFs paid capital gains in the same year.1 Investors seeking to improve the tax efficiency of their portfolios can look to exchange traded funds (ETFs).
While ETFs are generally more tax-efficient than traditional mutual funds, some ETF providers have been more effective than others in reducing capital gains distributions.
Our technology, scale and commitment to quality set iShares apart in building tax-efficient ETFs.
In 2019, ~95% of iShares ETFs are not estimated to distribute capital gains. For more details, access our 2019 capital gains estimates.