The Tax Bill of ETFs and ETNs

With the tax deadline rapidly approaching, it is absoltuly essential that investors understand how their exchange traded funds (ETFs) and exchange traded notes (ETNs) will be taxed.

With the vast array of ETFs to choose from, taxes can get tricky. In general the tax treatment of ETFs is relatively simple and is applicable to long-term and short-term capital gains rules and rates. For example if one held the SPDY (SPY) for less than one year, any gains would be subject to short-term capital gains rates and if held for longer than one year, then the gains would be subject to long-term capital gains rates. Read more of this post

How Uncle Sam Treats ETFs and ETNs

As the timer to file one’s taxes continues to tick away, it is important to understand how exchange traded funds (ETFs) and exchange traded notes (ETNs) can increase or decrease Uncle Sam’s portion of the pie.

With the vast array of ETFs to choose from, taxes can get tricky.  In general the tax treatment of ETFs is relatively simple and is applicable to long-term and short-term capital gains rules and rates.  For example if one held the SPDY (SPY) for less than one year, any gains would be subject to short-term capital gains rates and if held for longer than one year, then the gains would be subject to long-term capital gains rates. Read more of this post

Understanding How ETFs And ETNs Are Taxed

As the end of the year rapidly approaches, it is important to understand how Uncle Sam will treat one’s ETF and ETN holdings. 

With the vast array of ETFs to choose from, taxes can get tricky.  In general the tax treatment of ETFs is relatively simple and is applicable to long-term and short-term capital gains rules and rates.  For example if one held the SPDY (SPY) for less than one year, any gains would be subject to short-term capital gains rates and if held for longer than one year, then the gains would be subject to long-term capital gains rates. Read more of this post

The Tax Implications Of ETFs and ETNs

As with all other sources of income, income that is generated through exchange traded funds (ETFs) and exchange traded notes (ETNs) are subject to increasing an investor’s tax liability.  So one doesn’t get hit out of left field, here is a summary of how ETFs and ETNs are taxed.

With the vast array of ETFs to choose from, taxes can get tricky.  In general the tax treatment of ETFs is relatively simple and is applicable to long-term and short-term capital gains rules and rates.  For example if one held the SPDY (SPY) for less than one year, any gains would be subject to short-term capital gains rates and if held for longer than one year, then the gains would be subject to long-term capital gains rates.

It gets tricky when one starts dealing with commodities ETFs.  These ETFs shoot of Schedule K-1’s, which track the gains and losses of the fund for the year, because they are actually limited partnership interests in the fund.  For example, United States Oil (USO) is formed as a partnership interest, so those who own the ETF have a partnership interest in the fund and will receive a K-1 outlining gains or losses. Read more of this post

Understanding How ETFs And ETNs Are Taxed

August 18, 2010

As with all other sources of income, income that is generated through exchange traded funds (ETFs) and exchange traded notes (ETNs) are subject to increasing an investor’s tax liability.  So one doesn’t get hit out of left field, here is a summary of how ETFs and ETNs are taxed.

With the vast array of ETFs to choose from, taxes can get tricky.  In general the tax treatment of ETFs is relatively simple and is applicable to long-term and short-term capital gains rules and rates.  For example if one held the SPDY (SPY) for less than one year, any gains would be subject to short-term capital gains rates and if held for longer than one year, then the gains would be subject to long-term capital gains rates.

It gets tricky when one starts dealing with commodities ETFs.  These ETFs shoot of Schedule K-1’s, which track the gains and losses of the fund for the year, because they are actually limited partnership interests in the fund.  For example, United States Oil (USO) is formed as a partnership interest, so those who own the ETF have a partnership interest in the fund and will receive a K-1 outlining gains or losses. Read more of this post

Why ETFs Are Superior To Mutual Funds

With the plethora of investment tools at one’s hands and the concept of indexing flooding newswires, exchange traded funds and their counterparts are extremely attractive and for good reason.

An alert investment advisor has probably heard of ETFs but doesn’t really know what they offer.  In a nutshell, ETFs offer the ability to be traded intraday on an exchange, unlike traditional mutual funds which can only be bought and sold at the end of a trading day.  They give investors the ability to access hard to reach markets, like commodities, currencies and emerging markets, while being able to be sold short or utilized as a hedging tool.  They are open-ended structures, which makes them liquid. Read more of this post