TY - JOUR T1 - Along Came a SPDR JF - ETFs and Indexing SP - 144 LP - 154 VL - 2001 IS - 1 AU - A. Seddik Meziani Y1 - 2001/09/21 UR - http://guides.pm-research.com/content/2001/1/144.abstract N2 - 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. ER -