3 days ago
Wall Street's Dividend Tax Dodge Arrives in Fixed-Income ETFs
A pair of new bond exchange-traded funds is making it easier than ever for investors to avoid taxes on coupon payments.
The F/m Compoundr High Yield Bond ETF (ticker CPHY) and the F/m Compoundr U.S. Aggregate Bond ETF (CPAG) began trading this week with the goal of transforming 'interest income into unrealized capital gains,' according to F/m Investments' website. To do so, the ETFs will sell off holdings prior to their dividend dates to avoid receiving a taxable distribution.
