iShares notes the importance of paying attention to tax efficiencies at a time when returns are expected to remain low.
“Tax season is a time where investors have a heightened awareness about the impact taxes have on their investments,” said Kevin Feldman, managing director at iShares. “ETFs inherently offer tax efficiency through their unique structure, but it is important to note not all ETFs are equally tax efficient. We want to ensure investors are educated on the long-term impact of taxes and have the knowledge to choose wisely.”
The fact sheet underscores the importance of taxes on returns, how ETFs can offer important tax benefits, the significance of a manager’s track record in delivering tax efficiency and why ETF structure matters when evaluating tax efficiency.”