ETFs have seen rapid adoption by investors and advisors in recent years, but while the products themselves are known for their liquidity and transparency, what’s less understood is the tax bite some may deliver at the end of each year. With this in mind, Financial Planning spoke with Adam Patti, CEO of IndexIQ, to talk taxes and ETFs.
Q. Commodity ETFs have been one of the fastest-growing segments of the ETF universe, but many of these funds come with an added tax burden. Why is that?
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