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Brookings Institution


New report offers solutions for the disparity between how mutual funds and ETFs are taxed

A new report from Brookings Institution scholar Elena Patel suggests that the current tax code treats mutual funds and ETFs differently, penalizing mutual fund investors. The difference in timing allows ETF investments to outperform mutual fund investments, even when holding the same stocks and bonds. The report proposes strategies to ...

SourceBrookings Institution·TypeData/statistical analysis·DateMay 29, 2026