Pimco ETFs with Capital Gains distributions for 2014
While ETFs are mostly tax efficient, especially compared to most mutual funds, there are some ETFs that do incur capital gains distributions annually. Pimco recently announced the ETFs that will be subject to a distribution for 2014.
- 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (HYS)
- 1-3 Year U.S. Treasury Index Exchange-Traded Fund (TUZ)
- 1-5 Year U.S. TIPS Index Exchange-Traded Fund (STPZ)
- 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ)
- 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund (ZROZ)
- 3-7 Year U.S. Treasury Index Exchange-Traded Fund (FIVZ)
- 7-15 Year U.S. Treasury Index Exchange-Traded Fund (TENZ)
- Broad U.S. TIPS Index Exchange-Traded Fund (TIPZ)
- Diversified Income Active Exchange-Traded Fund (DI)
- Enhanced Short Maturity Active Exchange-Traded Fund (MINT)
- Global Advantage Inflation-Linked Bond Active Exchange-Traded Fund (ILB)
- Intermediate Municipal Bond Active Exchange-Traded Fund (MUNI)
- Investment Grade Corporate Bond Index Exchange-Traded Fund (CORP)
- Low Duration Active Exchange-Traded Fund (LDUR)
- Foreign Currency Strategy Active Exchange-Traded Fund (FORX)
- Total Return Active Exchange-Traded Fund (BOND)
- Short Term Municipal Bond Active Exchange-Traded Fund (SMMU)
Capital gains distributions for securities shouldn’t create any tax obligations for securities held in qualified accounts, such as IRAs, Roth IRAs or 401(ks), but for taxable accounts, investors will receive 1099s and will have to report the gains on their 2014 income tax return. While ETF Model SolutionsTM utilizes Pimco ETFs within several of its ETF-based allocation models for SMA/UMA accounts, we currently do not hold any of the ETFs in the above list.
