Tax Efficiency Differences: ETFs vs. Mutual Funds
Fact checked by Michael RosenstonReviewed by Charlene Rhinehart Bloomberg / Contributor / Getty Images ETF vs. Mutual Fund Tax Efficiency: An Overview Tax considerations for mutual funds and exchange-traded funds (ETFs) are similar in many ways; both are taxed on dividends and capital gains distributions as well as gains resulting from market transactions. However, due to the…