My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
“41 issuers had filed for their first ETF in 2021… amounting to just under a quarter of all the issuers on the U.S. market since State Street launched the SPDR S&P 500 ETF Trust (SPY) in 1993.”
“Most do a very good job of helping investors defer capital gains taxes, allowing them to pay the taxes they owe when they owe them, and not when others’ might stick them with the bill – as has been the case for years for many mutual fund investors.”
“It’s a unique structure in that even as participants in the primary market are acting in their own self-interest it is actually to the betterment of the little guy.”
“Investors have stayed loyal in the past month and likely will into 2022.”
ETF Tweet of the Week: According to Morningstar, only 141 of the 1,582 ETFs offered by the 15 largest issuers are expected to distribute capital gains to investors in 2021. Just 34 of these ETFs will have cap gains representing > 1% of their November net asset value. Why do ETFs distribute cap gains at all? Alpha Architect’s Wes Gray explains…
1/10. Some mutual funds will be distributing a LOT OF TAX PAIN in 2021.
ETFs will deliver a lot less pain but THEY ARE NOT PERFECT in all situations.
Here are some reasons why you might see ETF distributions:
— Wes Gray 🇺🇸 (@alphaarchitect) December 30, 2021
ETF Chart of the Week: ETFs took in approximately $900 billion in 2021, obliterating 2020’s record of over $500 billion.