The Tax Man Loves the 90% Yields That Gen Z Is Chasing
Here’s more about the “innovation barbell” we’re in
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Photographer: Cole Burston/BloombergThis article is for subscribers only.
Welcome to ETF IQ, a weekly newsletter dedicated to the $14 trillion global ETF industry. I'm Bloomberg News reporter and anchor Katie Greifeld.
A few weeks ago, this newsletter discussed a new breed of ETFs whose explicit purpose is to dodge dividends in an effort to avoid taxable distribution. At the time, industry veteran Dave Nadig described the “innovation barbell” we’re in — at the same time that funds are being created to minimize tax bills, there’s also a booming corner of leveraged, retail-oriented products that are “explicitly awful for taxation.”