%0 Journal Article %A A. Seddik Meziani %T Along Came a SPDR %B How Tax-Efficient are S&P Depositary Receipts? %D 2001 %J ETFs and Indexing %P 144-154 %V 2001 %N 1 %X Exchange-traded funds (ETFs) are investment tools that can insulate investors from the negative effect of money flows that generate tax liabilities. This study demonstrates that ETFs clearly offer a tax advantage when compared to similar index-based mutual funds, but mostly for investors who favor a buy-and-hold investment strategy. Short-term holders will not benefit nearly as much from ETF tax-efficiency. This study also concludes that there exists an inverse relationship between tax-efficiency and marginal tax rates, with the least affluent investors enjoying most of the tax savings. %U https://guides.pm-research.com/content/iijetfind/2001/1/144.full.pdf