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Basic Question 10 of 15
Which of the following least accurately completes the following sentence? ETFs are generally more tax efficient than open-end funds ______
II. because investors can choose the timing of recognition for capital gains and losses.
III. because investors are not subject to involuntary distributions due to trading by other investors.
IV. because dividends are immediately reinvested.
I. due to the way they are structured legally.
II. because investors can choose the timing of recognition for capital gains and losses.
III. because investors are not subject to involuntary distributions due to trading by other investors.
IV. because dividends are immediately reinvested.
User Contributed Comments 4
| User | Comment |
|---|---|
| magicchip | aargh... again, must read questions carefully. |
| Hervz | Lol.. me too |
| khalifa92 | Sometimes you choose an answer cause subconsciously you relate to it. |
| joeclark | I remember that Cap G/L does not matter for ETF. Kindly check. |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe mutual funds and compare them with other pooled investment products
CFA® 2024 Level I Curriculum, Volume 6, Module 3.