What you're saying is correct. But you're misunderstanding what I'm saying above. Within the ETF, a fund manager can trade (if they use the creation and redeem

What you're saying is correct. But you're misunderstanding what I'm saying above. Within the ETF, a fund manager can trade (if they use the creation and redeem mechanism correctly), and there is no tax consequence to the fund or the investor. I am suggesting that that benefit is far superior than any tax harvesting if you are directly indexed, etc...