How Much More Tax-Wise Are ETFs vs. Mutual Funds?
We looked at the difference in posttax returns between mutual funds and exchange-traded funds. Here’s what we found.
ETFs offer a slightly better posttax return on average—but it can add up over time.Illustration: Michael Glenwood
By Derek Horstmeyer
Investors often hear that because of tax-efficient structural features, exchange-traded funds generally offer better after-tax returns than mutual funds.
But many don’t know the exact magnitude of those tax savings. It is not insignificant.
Already a member? Sign In
Sponsored Offers
