Comments on: High Yield ETFs http://www.lherr.org/blog/2010/01/16/high-yield-etfs/ Dedicated to portfolio construction and management. Mon, 26 Jul 2010 16:19:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Physlab http://www.lherr.org/blog/2010/01/16/high-yield-etfs/comment-page-1/#comment-799 Physlab Mon, 18 Jan 2010 14:12:10 +0000 http://www.lherr.org/blog/?p=5955#comment-799 "So I am considering high yielding ETFs for the tax exempt account. For the taxable account – the seeking alpha and yahoo sites provide information on the ETF’s dividend, and these would be taxable. How do I determine if there are other distributions from ETFs that would be subject to tax?? Is this mainly an issue of how often the ETF rebalances its holding and thereby generates capital gains?" The rebalancing of individual ETFs has not posed a tax problem for me. One can expect to pay taxes on the dividends, but that is about it. As I recall, last year I paid capital gain taxes on only one ETF. ETFs are considered to be much more tax efficient than the standard index mutual funds. And much better than actively managed mutual funds. Lowell “So I am considering high yielding ETFs for the tax exempt account.
For the taxable account – the seeking alpha and yahoo sites provide information on the ETF’s dividend, and these would be taxable. How do I determine if there are other distributions from ETFs that would be subject to tax?? Is this mainly an issue of how often the ETF rebalances its holding and thereby generates capital gains?”

The rebalancing of individual ETFs has not posed a tax problem for me. One can expect to pay taxes on the dividends, but that is about it. As I recall, last year I paid capital gain taxes on only one ETF. ETFs are considered to be much more tax efficient than the standard index mutual funds. And much better than actively managed mutual funds.

Lowell

]]> By: Hapsburger http://www.lherr.org/blog/2010/01/16/high-yield-etfs/comment-page-1/#comment-798 Hapsburger Mon, 18 Jan 2010 10:53:38 +0000 http://www.lherr.org/blog/?p=5955#comment-798 This question concerns building tax effecient portfiolios in terms of asset location. I have tax exempt and tax deferred retirement accounts, as well as a taxable brokerage account. So I am considering high yielding ETFs for the tax exempt account. For the taxable account - the seeking alpha and yahoo sites provide information on the ETF's dividend, and these would be taxable. How do I determine if there are other distributions from ETFs that would be subject to tax?? Is this mainly an issue of how often the ETF rebalances its holding and thereby generates capital gains? This question concerns building tax effecient portfiolios in terms of asset location. I have tax exempt and tax deferred retirement accounts, as well as a taxable brokerage account.

So I am considering high yielding ETFs for the tax exempt account.
For the taxable account – the seeking alpha and yahoo sites provide information on the ETF’s dividend, and these would be taxable. How do I determine if there are other distributions from ETFs that would be subject to tax?? Is this mainly an issue of how often the ETF rebalances its holding and thereby generates capital gains?

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