Educating people on exchange traded funds and the impact they have on today's financial markets.
Formal education will make you a living; Self education will make you a fortune.
The average expense ratio of ETFs launched in the past six months, many of which were leveraged index funds; sector, industry or niche funds (ophthalmology, for instance); or offerings tracking specialized or custom-made benchmarks.
How Uncle Sam Treats ETFs and ETNs
As the timer to file one’s taxes continues to tick away, it is important to understand how exchange traded funds (ETFs) and exchange traded notes (ETNs) can increase or decrease Uncle Sam’s portion of the pie.
With the vast array of ETFs to choose from, taxes can get tricky. In general the tax treatment of ETFs is relatively simple and is applicable to long-term and short-term capital gains rules and rates. For example if one held the SPDY (SPY) for less than one year, any gains would be subject to short-term capital gains rates and if held for longer than one year, then the gains would be subject to long-term capital gains rates.
It gets tricky when one starts dealing with commodities ETFs. These ETFs shoot of Schedule K-1’s, which track the gains and losses of the fund for the year, because they are actually limited partnership interests in the fund. For example, United States Oil (USO) is formed as a partnership interest, so those who own the ETF have a partnership interest in the fund and will receive a K-1 outlining gains or losses... Continue Reading this article and previous articles about ETF's here