What are the tax implications of a buffered product?​

Generally, buffered or defined outcome ETFs are designed with tax efficiency in mind, primarily due to their ETF structure and underlying investment strategies.  

Here's a breakdown of the typical tax implications: 

• Tax deferral: Unlike some other investments that might generate taxable events at the end of an outcome period, many buffered ETFs can defer capital gains until the shares are sold. This allows investors more control over the timing of tax payments and potentially allows for longer periods of tax-free growth within the ETF. 

• As with all ETFs and other securities, any sale will be considered a taxable event, and thus the investor will either incur capital gains tax or have a capital loss deduction.