Discuss why ETFs are considered tax-efficient vehicles and how their tax treatment differs from mutual funds.
Question:
Discuss why ETFs are considered tax-efficient vehicles and how their tax treatment differs from mutual funds.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (5 reviews)
ExchangeTraded Funds ETFs are considered taxefficient vehicles because they are designed to minimize tax liabilities for investors Unlike mutual funds ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Mutual Funds And Exchange Traded Funds Building Blocks To Wealth
ISBN: 9780190207434
1st Edition
Authors: H. Kent Baker, Greg Filbeck, Halil Kiymaz
Question Posted:
Students also viewed these Business questions
-
You are contemplating putting part of your investment funds into a Money Market Mutual Fund (MMF). Recently MMFs have had trouble retaining funds. It was our understanding due to the nature of the...
-
You have completed your first meeting with Harper and Riley Evans. You are confident that you now have most of the information you will need to prepare a comprehensive financial plan for them. Beyond...
-
1. What differentiates an exchange-traded fund from other investment companies? How easily are ETF shares bought and sold? Do they sell for a premium or discount from their net asset values? 2. What...
-
What is GST?
-
Locate the 2004 financial statements for The Walt Disney Company on the Internet. In Note 4 to the financial statements, Disney briefly outlines a rather complicated lease it arranged in regard to...
-
The experimental Oblique Wing Aircraft (OWA) has a wing that pivots, as shown in Figure P8.17. The wing is in the normal un skewed position for low speeds and can move to a skewed position for...
-
Employee Testing A company gave psychological tests to prospective employees.The random variable x represents the possible test scores. Use the histogram to find the probability that a person...
-
Sandblasting equipment acquired at a cost of $42,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed in service on October 1 of the current fiscal...
-
Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable...
-
Identify four main differences between mutual funds and ETFs.
-
Explain how passive, active, and Smart Beta ETFs differ.
-
What conditions would suggest that a company should buy a training program from an outside vendor? Which would suggest that the firm should develop the program itself?
-
Jasmine Minoza, the chief information officer of a Canada- based designer of video games, Adventure Gaming, Inc. (AGI), is considering outsourcing her companys software development activities to...
-
The input to the circuit of Fig. 5-23 with RC = 1 is v 1 = sin t. Write KCL at node B and solve for v 2 . +1 VI R B A + C D 3+ 10-41. 12
-
Draw an angle of 120. First draw a straight line about 6cm long. Place the protractor on the line so that the central cross hair is on one of the end points of the line. Make sure the line lines up...
-
Draw a seriesparallel switch circuit that implements the function f(x, y, z) = 1 if inputs xyz represent either 1 or a prime number in binary (xyz = 001, 010, 011, 101, 111).
-
A parallel-plate capacitor connected to a battery maintaining a potential difference \(V\) across the capacitor initially stores electric potential energy \(U_{1}^{E}\). If the plate area is doubled...
-
How does the action of a peptide hormone differ from that of a steroid hormone?
-
(a) What is the focal length of a magnifying glass that gives an angular magnification of 8.0 when the image is at infinity? (b) How far must the object be from the lens?
-
You are interested in having a mountain cabin built for weekend trips, vacations, to host family, and perhaps eventually to retire in. After discussing the project with a local contractor, you...
-
Sung Sam, Inc. is currently designing a new digital camcorder that is projected to have the following per unit costs to manufacture: Cost Categories Unit Costs Materials...
-
Fifty years ago, Grandma Bell purchased a set of gold plated dinnerware for $55, and last year you inherited it. Unfortunately a house fire at your home destroyed the set. Your insurance company is...
-
Comfort Golf Products is considering whether to upgrade its equipment Managers are considering two options. Equipment manufactured by Stenback Inc. costs $1,000,000 and will last five years and have...
-
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 71,000 shares of $10 par common stock. 8,500 shares of $60 par, 6 percent, noncumulative preferred stock. On...
-
Read the following case and then answer questions On 1 January 2016 a company purchased a machine at a cost of $3,000. Its useful life is estimated to be 10 years and then it has a residual value of...
Study smarter with the SolutionInn App