Hi Bogleheads,
Is there a method to determine if a particular ETF generates UBTI based on it's current holdings? Aside from manually reviewing a list of current holdings and seeing if any of the holdings are MLPs (or even some RIETs?), or if the fund prospectus/passive strategy includes MLPs in their potential investment universe. I was curious if this data was tracked and available somewhere, perhaps as historical UBTI distributions?
I would like to be sure I am avoiding such ETFs for tax advantaged accounts
Method to determine if an ETF generates UBTI
Re: Method to determine if an ETF generates UBTI
ETFs do not generate UBTI because they are C corporations. Of publicly traded securities, only Master Limited Partnerships (MLPs) generate UBTI.