Current Options
Disclosure Document
(PDF Format) 


Securities Future 
Disclosure Document
(PDF Format) 



Securities Corporation

780 Third Avenue
New York, NY 10017

Spring 2008, Volume X, Issue 1    

Considered Responses: ETF Gains?


Why did my ETF pay a capital gains distribution last year?  I thought ETFs don't have to make distributions.


ETFs use a distribution-in-kind mechanism to cash out investors so that ETFs don't realize any gains from shareholder redemptions.  However, as an ETF changes its portfolio gains and losses are realized.  As ETFs get more active expect more distributions.

Note: Further information on this topic click here

This article and other articles are provided for information purposes only.  They are not intended to be an offer to engage in any securities transactions or to provide specific financial, legal or tax advice. Articles may have been rendered partly inaccurate by events that have occurred since publication.  Investors should consult their advisers before acting on any topics discussed herein.   





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