Tax form

What is the Tax form?

The Tax form indicator specifies the type of tax form that an ETF provides to investors for tax reporting purposes. This value can be 1099 or K1, each with different tax implications.

• 1099 - reports income such as dividends, interest, and capital gains. ETFs with a 1099 form typically follow a more straightforward tax reporting process than traditional equity or bond investments.
• K1 - commonly associated with pass-through entities like partnerships. A K1 form details each investor’s share of the ETF’s income, deductions, and credits. ETFs issuing a K1 may involve more complex tax reporting, requiring investors to handle additional tax filing considerations.

Why is the Tax form important?

This indicator is useful for investors who want to understand the tax implications of their ETF investments. By knowing whether an ETF provides a 1099 or a K1, investors can better anticipate the complexity of their tax filings and select investments that align with their personal tax preferences.