Method to determine if an ETF generates UBTI

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hoofaman
Posts: 958
Joined: Tue Jul 14, 2020 3:39 pm

Method to determine if an ETF generates UBTI

Post by hoofaman »

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
ultrabase
Posts: 2
Joined: Fri Mar 12, 2021 9:34 am

Re: Method to determine if an ETF generates UBTI

Post by ultrabase »

ETFs do not generate UBTI because they are C corporations. Of publicly traded securities, only Master Limited Partnerships (MLPs) generate UBTI.
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