Hi all:
I can't seem to figure out the answer to this question, so wondering if anyone knows from experience...
Last summer (>1 year ago), I purchased a few iShares bond ETFs with specific maturities (e.g. IBDP which matures in December of this year). Since then, presumably due to rate changes (or perhaps something else?), the ETF has kicked up unrealized capital gains. A couple questions:
1. If I held this to maturity, would the capital gains trend to 0, perhaps paid out instead through dividends?
2. Perhaps based on the answer to #1, given that this would now be taxed as long-term capital gains, wouldn't it make sense to sell this ahead of maturity for better tax treatment?
Thanks for the help!
I can't seem to figure out the answer to this question, so wondering if anyone knows from experience...
Last summer (>1 year ago), I purchased a few iShares bond ETFs with specific maturities (e.g. IBDP which matures in December of this year). Since then, presumably due to rate changes (or perhaps something else?), the ETF has kicked up unrealized capital gains. A couple questions:
1. If I held this to maturity, would the capital gains trend to 0, perhaps paid out instead through dividends?
2. Perhaps based on the answer to #1, given that this would now be taxed as long-term capital gains, wouldn't it make sense to sell this ahead of maturity for better tax treatment?
Thanks for the help!
Statistics: Posted by eagleeye13 — Tue Sep 03, 2024 9:00 am — Replies 0 — Views 98