The Big Take
‘Black Holes for Capital Gains’: New Tax Trick Takes Off in ETFs
Investors are seeding ETFs with appreciated assets, taking advantage of an infamous loophole to wash out taxable gains.
Officially, the Twin Oak Active Opportunities ETF exists to seek “long-term capital appreciation.” Unofficially it has a second, more cunning, purpose.
TSPX, to use the fund’s ticker, debuted in February without much marketing. Yet it launched with nearly $450 million in assets and almost immediately received a $99 million inflow — amazing numbers for a virtually unknown ETF.