One of the marketing pitches for ETFs has been that investors can avoid capital-gains tax bills with these investment vehicles. The scenario this year, however, could create a dent on that pitch, reported Ian Salisbury in today's
Wall Street Journal Fund Track column
. Some ETFs are handing out substantial capital-gain distributions to shareholders this year, and the list of such ETFs may include the SPDR DJ Wilshire Mid Cap Growth ETF
and HealthShares Cardiology Devices ETF
. Among the factors at play: Capital-gains distributions for all kinds of funds, including ETFs, are expected to rise this year after a five-year bull market. Also, several funds have been able to offset gains with losses they posted in the bear market of 2000-2002.
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