- Investors move $40 billion or more out of BlackRock’s S&P 500 ETF every three months and place most of the funds in a near-identical Vanguard product before reversing the trade days later.
- The strategy is designed to avoid dividend distributions and the 30% US tax applied to foreign investors on those payments.
Quotes
“Every three months like clockwork, investors pull $40 billion or more from a BlackRock Inc. exchange-traded fund tracking the S&P 500 and deposit most of it into a near-identical Vanguard Group product.”