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ETF Tax Treatment Supports Fairness, Efficiency, and Long-Term Investing

Exchange-traded funds have transformed how millions of Americans invest, offering accessible, low-cost, and efficient options for building long-term financial security. Preserving key features of ETFs, including their tax treatment, is essential to expanding participation and supporting long-term investing.

How In-Kind Redemptions Work Imagine an ETF owns shares of many different companies. When a large investor redeems shares the ETF can respond in two ways: Sell holdings for cash: The ETF sells some...

Exchange-traded funds have transformed investing for millions of Americans. If policymakers want more Americans to start investing early, stay invested, and build long-term financial security, they should preserve the features that make ETFs accessible, affordable, and efficient. That includes preserving ETF tax treatment.

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Our Impact by the Numbers


$46.13T

Total Assets Represented

Managed by ICI members across mutual funds, ETFs, closed-end funds, and more, underscoring our industry’s economic influence.

29K+

Funds Represented

Represented by ICI’s member companies, spanning a diverse range of investment products.

128M+

US Investors

Supported through ICI’s advocacy for policies that protect and empower individual investors nationwide.

About ICI


The Investment Company Institute (ICI) provides essential data and insights to strengthen the asset management industry and support informed decisions.

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Shaping Public Policy and Regulation

ICI works with regulators and policymakers in the United States and around the world, bringing to bear robust legal and economic analysis to support its efforts and applying a deep understanding of regulatory and policymaking processes and priorities.

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Publishing Leading-Edge Research

ICI publishes leading-edge research on financial markets, financial stability, and tax and retirement policy. ICI is also an authoritative source of statistics on the fund industry, collected from ICI member firms and trusted organizations, to provide a comprehensive assessment of the industry and its shareholders at any given point in time.

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Supporting the Asset Management Industry

ICI organizes each year eight major public industry conferences and dozens of webinars and trainings each year as well as hosts more than 100 member committees, working groups, and task forces to share industry best practices, gather input from industry professionals, and discuss common challenges related to operations, regulations, and technology.