Re: Tax consequences of holding an ETN vs. ETF
I would have posted this on the ET FUNDS board, but due to insctivity do do here, in light of your expressed expertise.
Can a fund which uses leverage, such as EDC, appear to be an ETF,but, in fact, be an ETN? I assume that the name will identify the fund type, but since you raise the subject of leverage, and lower actual return,I would want to have a better correlation between the reported and actual return to the investor.
When leveraging is used by these funds to multiply the return percentages, the use of derivatives, futures, and other vehicles can complicate things for the common investor, i.e., IEMG ytd might be 38%, while EDC might be 100%, but after taxes, not necessarily?