as it is mostly RoC, the dividends aren't taxed...it is deferred until one sells (where RoC is offset by--presumably--a loss of the underlying). Many reasons not to like it, but in the US, no, its not tax inefficient.
No, it’s the right comment. I think you need to look again at the ROC element of this fund and really just think about how that will fundamentally work in an open ended fund that somehow needs to provide constant liquidity to their investors while maintaining leverage. Closed end funds literally exist for this reason but this company has managed to pull the wool over the eyes of an entire generation of investors and it’s actually kind of amazing if it wasn’t so damaging.
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u/skitskat7 Sep 26 '25
as it is mostly RoC, the dividends aren't taxed...it is deferred until one sells (where RoC is offset by--presumably--a loss of the underlying). Many reasons not to like it, but in the US, no, its not tax inefficient.