Visual Guide to ETFs

A Discussion of Taxation Issues

Capital gains are taxed differently based on the type of asset you are investing in and the type of structure that is built around the asset. The taxation of a fund, and thereby its performance and return, can depend on a variety of factors:

• Fund creation and redemption activity

• Structure of the fund and attribution of the performance

• Index turnover

• Cash management

• Tracking error

• Expense ratios

Presented here are some concepts to be aware of when considering the tax ramifications of your position. Please seek an accountant for specific tax guidance regarding your fund holdings. These are examples of potential treatment of the various structures and can by no means be used as a representation for tax-planning ...