One of the benefits ETFs have traditionally had over mutual funds was that because of the way the funds swap securities, ETFs didn't hand out year-end capital gains to investors. However, as Ian Salisbury notes in the Tuesday edition of the Wall Street Journal Fund Track column, some bond ETFs will be doing just that.

Salisbury notes that at BlackRock's iShares division, eight of its bond offerings are expected to pass out gains, due to the way the funds are structured. Over at State Street, a dozen will be doing so, including eight bond funds. As for Vanguard, three ETFs will pass out gains, including Vanguard Extended Duration Treasury Index ETF. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE