Saturday, April 17, 2010

Hidden Tax Traps Inside ETFs

A great article in Wall Street Journal about how paper profits are taxed in commodity and currency ETFs. GLD is one example. It's taxed at 28% rate even if you hold it more than a year.

"You shouldn't invest in a commodity or currency ETF at all unless you "thoroughly understand what type of income the transaction will generate and what your tax rate will be"

Link to the article