Do U.S. government obligations apply to the ETF version of a fund?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
Smilodon
Posts: 67
Joined: Thu Jan 22, 2015 5:42 pm

Do U.S. government obligations apply to the ETF version of a fund?

Post by Smilodon »

Do U.S. government obligations apply to the ETF version of a fund?

For example, does VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) receive the same treatment as VFSAX (Vanguard FTSE All-World ex-US Small-Cap Index Fund)? According to U.S. government obligations income information FTSE All-World ex-US Small-Cap Index Fund has 0.22% listed. Would the same apply to VSS?

My 1099-DIV supplement suggests that it does. But the Vanguard document does not explicitly say one way or the other. The footnotes indicate a single asterisk means "This information applies to all share classes of a fund, including ETFs (exchange-traded funds", but an asterisk is not applied to the entry for Vanguard FTSE All-World ex-US Small-Cap Index Fund.
sycamore
Posts: 6223
Joined: Tue May 08, 2018 12:06 pm

Re: Do U.S. government obligations apply to the ETF version of a fund?

Post by sycamore »

Smilodon wrote: Sun Feb 11, 2024 3:42 pm Do U.S. government obligations apply to the ETF version of a fund?

For example, does VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) receive the same treatment as VFSAX (Vanguard FTSE All-World ex-US Small-Cap Index Fund)? According to U.S. government obligations income information FTSE All-World ex-US Small-Cap Index Fund has 0.22% listed. Would the same apply to VSS?

My 1099-DIV supplement suggests that it does. But the Vanguard document does not explicitly say one way or the other. The footnotes indicate a single asterisk means "This information applies to all share classes of a fund, including ETFs (exchange-traded funds", but an asterisk is not applied to the entry for Vanguard FTSE All-World ex-US Small-Cap Index Fund.
Yes, in general, the tax treatment of the various shares classes (ETF, Investor, Admiral) of the same fund get the same tax treatment.

One exception is with exempt-interest and capital losses - related to how the ETF class declares dividends differently (monthly) compared to the mutual fund share class (declares daily).

But in your scenario the same tax treatment applies to both.
User avatar
beyou
Posts: 6789
Joined: Sat Feb 27, 2010 2:57 pm
Location: If you can make it there

Re: Do U.S. government obligations apply to the ETF version of a fund?

Post by beyou »

And note afaik only at Vanguard are there ETF and open funds that are just classes of the same fund. Anyplace else historically they may have a similar ETF and open end fund, but not the same underlying fund, therefore each with it’s own tax data.
Post Reply