Word came that the taxman had shut a door on the ETF tax dodge. Ambrose: every big fund swaps shares untaxed, a multi-trillion dollar trade. Pim: a trillion snails. Prudence: shut it, and he shuts every fund; one manager says the notice opened the door wider, or so he says. The Toll Keeper: the old road, an exchange fund, holds your money seven years.
The IRS warning will not end untaxed swaps of stock into ETFs: every big ETF relies on the same untaxed creation and redemption of units, a multi-trillion-dollar industry one lawyer says regulators will not kill, and one ETF manager argues the notice opens the door for well-designed deals; the old route, an exchange fund, defers the tax but locks the money up for seven years.
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Treasury, IRS crack down on ETF ploy the wealthy are using to avoid income tax
CNBC · Oct 2, 2026
