Rich Americans Fleeing Tax Hikes May Turbocharge Shift to ETFs

The booming ETF industry may be set to lure even more cash in the coming years as rich Americans facing higher capital gains taxes look to limit what they owe Uncle Sam.

President Joe Biden’s plan to double the rate those making more than $1 million a year pay on investment profits would accelerate a shift that’s already seen hundreds of billions of dollars migrate from mutual funds to exchange-traded funds, market watchers say. That’s because ETFs are generally more tax efficient, spinning off fewer capital-gain disbursements that for some could soon become a lot more costly.

WATCH: The ETF industry may get an big boost in the coming years with President Joe Biden’s plan to double the capital gains tax.

Source: Bloomberg)

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