Re: Can someone explain tax advantages to owning an index fund?
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There are no inherent tax advantages to owning an index fund. Like poker, it all depends.
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I don't know why you think this since lower turnover equals lower tax costs ...and index funds tend to have dramatically lower turnover than actively managed funds.
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'Tend to' <> inherently advantageous. Do you see why?
There are/ I own plently of funds that have less turnover than some index funds. In past years, the SPX has turned over dozens and dozens of names a year, some indexes are worse.
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