3 ms·

As far as I understand, Cede's contractual rights make it so you are pretty close to 'owning' the stock compared to ETF/Mutual Fund. >So you can be the "benefi

• TheCoelacanth 7y ago
  You are the registered owner of the ETF, but the beneficial owner of the underlying shares.
  • anonu 7y ago
    Not correct. If you own an ETF you do not have voting rights of the underlying stocks. So you are not a beneficial owner of the underlying. You also do not have "direct" access to the dividends. The fund manager will pool the dividends and pay them out on a regular schedule, after taking their cut of fees.
    • TheCoelacanth 7y ago
      The IRS defines "beneficial owner" as "the person who is required under U.S. tax principles to include the payment in gross income on a tax return"[1]. Using that definition, you certainly would be a beneficial owner regardless of whether you can directly exercise voting rights or directly receive dividends. The indirectness is the whole point of the distinction between beneficial and registered owners. [1] https://www.irs.gov/instructions/iw8ben#idm140376280574400 https://www.irs.gov/instructions/iw8ben#idm140376280574400
      • Tenoke 7y ago
        But you don't need to write every stock the Mutual Fund invested in - just the Mutual Fund itself, so this makes it even clearer.