Abstract
In addition to their other advantages described in Chapter 3, ETFs are also acknowledged for their tax benefits. In Chapter 4, we explained the mechanics underlying their potential tax advantage over mutual funds, noting that this benefit derives from their unique creation and redemption process. When investors redeem their ETF shares, they receive shares of the underlying stocks in the index.
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© 2006 A. Seddik Meziani
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Meziani, A.S. (2006). Tax Savings of ETFs over Mutual Funds: A Case Study. In: Exchange-Traded Funds as an Investment Option. Finance and Capital Markets Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230513372_5
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DOI: https://doi.org/10.1057/9780230513372_5
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-51625-4
Online ISBN: 978-0-230-51337-2
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)