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How would ETFs (and passive investment systems in general) work without this trick? If there were no tax free way to do rebalancing, how could you really track

by gok 8y ago

How would ETFs (and passive investment systems in general) work without this trick? If there were no tax free way to do rebalancing, how could you really track the exchange?

loeg 8y ago
Mutual funds do this by distributing capital gains to investors annually. Yes, that would be one reason they might lag the index.