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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 hav
by 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 agoThe 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 agoBut you don't need to write every stock the Mutual Fund invested in - just the Mutual Fund itself, so this makes it even clearer.