4 ms·
You’re right - I was a bit unclear. What I mean is that ETF balancing activity ends up being untaxed. Effectively, you get diversification, gains, reinvestment
by abakker 8y ago
You’re right - I was a bit unclear. What I mean is that ETF balancing activity ends up being untaxed.
Effectively, you get diversification, gains, reinvestment of dividends, etc but never have to realize the gains unless you sell. The avoidance at large probably induces bubbles of asset prices as collectively, early investors avoid realizing gains.