What are the potential tax advantages of Global X Funds?
Global X Funds are less likely to make taxable capital gains distribution than actively managed funds. Because they are index investments, Global X Funds tend to experience lower portfolio turnover, and are therefore less likely to realize capital gains, which must be paid to investors on an annual basis. Additionally, Global X Funds are created and redeemed only in institutional volume by authorized participants. In some cases, these fund-level transactions are done with in-kind transfers of securities. This in-kind creation and redemption process is a non-taxable event for the fund.
