> Do normal mutual funds pay capital gains taxes as the things they invest other people's money in are changed? Yep! Tax efficiency of a mutual fund is quite

> Do normal mutual funds pay capital gains taxes as the things they invest other people's money in are changed? Yep! Tax efficiency of a mutual fund is quite an important factor to look at for your overall expenses as well. It's a large reason actively managed funds don't do as well as simple market-wide ETFs.