What does a funds tax status mean?
Tax status is, essentially, a fund’s unrealized appreciation. Put another way, this number represents the percentage of a fund’s assets that represent gains or losses on securities held. The figure is calculated as of the date at the top of the box, which in most cases will correspond with the most recent holdings date. This is an important figure for investors to consider because if and when these gains are realized through the sale of appreciated securities, the proceeds must be distributed to shareholders as taxable capital gains.
