Index funds are considered relatively tax efficient since they rarely have short-term gains.

Name: Index funds are considered relatively tax efficient since they rarely have short-term gains.
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Index funds are designed to track a specific index, such as the S&P 500, and typically have low turnover rates. As a result, they tend to generate fewer short-term gains or losses, which are subject to higher tax rates. This makes them a popular choice for tax-conscious investors.

Index Funds Are Considered Relatively Tax Efficient Since They Rarely