The ETF would not avoid these gains, but it might be able to create losses to offset them.That's how it'd work if you were "direct indexing" and holding the individual stocks. I do that for about half of my stock portfolio, and I've seen quite a few mergers and acquisitions that force capital gains events (maybe because I'm over weight small cap stocks that are easier targets for acquisitions or mergers). I am not sure if using the vehicle of an ETF could help reduce capital gains generated by acquisitions of the underlying stocks in some tax jurisdictions.
Statistics: Posted by grabiner — Tue Nov 18, 2025 11:14 pm — Replies 31 — Views 1800