Possible Changes in Tax Policy Could Further Drive ETF Usage Key Takeaways While pending increases to the capital gains tax rate are likely to only impact a subset of investors, we expect the tailwind for ETF demand to persist. Just three of the 585 Equity ETFs offered by iShares, Invesco, Schwab State Street Global Advisors, and Vanguard and star rated by CFRA passed along any capital gains to shareholders in 2020 that maintained positions throughout the year. In contrast, many mutual funds passed along some tax burden to shareholders, even those that stayed loyal throughout the year. Market-cap weighted ETFs such as