miffy2021-05-07 13:50:06

Q. Which of the following statements regarding distributions made by ETFs is correct? A. Return-of-capital (ROC) distributions are generally not taxable. B. ETFs generally reinvest any dividends received back into the ETF’s holdings. C. A dividend distribution is a distribution paid to investors in excess of an ETF’s earnings. Solution A is correct. Return-of-capital distributions are amounts paid out in excess of an ETF’s earnings and serve to reduce an investor’s cost basis by the amount of the distribution. These distributions are generally not taxable. 请问老师，A选项怎么理解？C选项的in excess of an ETF’s earnings又怎么理解？谢谢老师！