It’s capital gains distribution season -check your ETFs (and mutual funds)

It’s capital gains distribution season -check your ETFs (and mutual funds)

Mutual funds and even some ETFs typically distribute taxable capital gains to shareholders in December of each year.  ETFs are commonly more tax efficient and thus less likely than mutual funds to have an annual capital gains payout.  However, there are some ETFs that may have capital gains distributions, and you should confirm the distribution status annually to avoid an unexpected tax liability.

Some fund groups are better than others at putting out preliminary estimates and providing advance notice to advisers and shareholders.

See below for links to ETF provider 2019 distribution information or status of the preliminary 2019 capital gains estimates, if any, for many of the larger ETF fund groups .  Note- for most fund groups, if the Fund is not listed on their list, there may not be any gains for that fund in 2019.

• Direxion (not yet available on their website- anticipated posting date first week of December)
• First Trust 
• Flexshares  (not yet available on their website, but should be available by first week of December)
• GlobalX
• Goldman Sachs
• Invesco (not yet available on their website. Invesco’s 2018 preliminary estimate list was released on 11/30/18)
• iShares
• JP Morgan (JP Morgan estimates there will be no capital gains payments for 2019)
• ProShares (not yet available on their website)
• Schwab
• State Street SPDR
• Vanguard
• VanEck
• WisdomTree
• Xtrackers

Be sure to check back closer to the payout dates, as these are preliminary estimates and subject to change.  If you need clarifying information, we encourage you to contact the fund provider directly.

Capital gain distributions, if any, will vary from year-to-year.  Investors should consider asking their financial adviser or consulting with a qualified tax professional if they have questions regarding distributions from any investment, including ETFs and especially mutual funds.  There may be strategies that can be undertaken to mitigate the tax impact of any distributions.  Information above was sourced from the ETF providers’ website or from contacting the ETF provider directly.