PowerShares’ Capital Gains Record Highlights Tax Benefit of ETFs
Friday, January 8th, 2010ETF Database submits:
PowerShares announced yesterday that 116 out of its 117 ETFs paid zero capital gains distributions in 2009. The only PowerShares ETF to make a capital gains distribution on the year was the NASDAQ-100 BuyWrite Portfolio (PQBW), which paid out Long-Term Capital Gains of just under 15 cents a share. PowerShares noted that the unique index methodology, which writes covered calls on the NASDAQ-100 Index, is largely the cause of the capital gains. This is the first distribution for any PowerShares equity or fixed income ETF since the firm’s inception in 2003.
This near perfect track record further demonstrates one of the main advantages of the ETF: tax efficiency.
