Gears

iShares Announces Annual Distributions

Gears

iShares, Inc. released distributions paid to shareholders as of 8/31/2000 for its country-specific iShares based on MSCI indexes.

iShares MSCI fund AMEX symbol Total distribution per share Share price (8/31/2000 close) Distribution as percentage of share price
Australia EWA
$0.2326
$9.9375
2.34%
Austria EWO
$0.0449
$7.75
0.58%
Belgium EWK
$0.3592
$13.25
2.71%
Brazil EWZ
$0.3639
$19.75
1.84%
Canada EWC
$5.0572
$17.00
29.75%
EMU EZU
$0.0000
$76.250
0.00%
France EWQ
$1.2333
$26.50
4.65%
Germany EWG
$2.5316
$20.5625
12.31%
Hong Kong EWH
$0.2088
$13.50
1.55%
Italy EWI
$2.2267
$22.375
9.95%
Japan EWJ
$0.4514
$13.8125
3.27%
Malaysia EWM
$0.0534
$5.9375
0.90%
Mexico EWW
$0.4234
$16.75
2.53%
Netherlands EWN
$0.2257
$23.625
0.96%
Singapore EWS
$0.1719
$7.6875
2.24%
South Korea EWY
$0.0000
$18.75
0.00%
Spain EWP
$0.9491
$24.3125
3.90%
Sweden EWD
$5.3910
$24.625
21.89%
Switzerland EWL
$0.1572
$15.8125
0.99%
Taiwan EWT
$0.8575
$16.875
5.08%
United Kingdom EWU
$0.9267
$18.4375
5.03%

Source: iShares, Inc., the fund company that authorizes iShares ETFs to be managed
by Barclays Global Fund Advisors, a subsidiary of BGI

Some quick and dirty estimates of capital gains taxes for a hypothetical investor in iShares can be determined from the above chart. For example, John Davis, a single man who pays a long-term invested capital gains rate of 20%, with $10,000 in the iShares MSCI Japan in January would pay about $65.40 on the $327 distribution. On the other hand, had John invested $10,000 in the iShares MSCI Canada, he would pay about $595 in taxes on the $2,975 distribution. In reality, John would pay slightly more than that because the small part of the distribution consisting of short-term capital gains and dividends is taxed as ordinary income.

While in many respects ETFs are inherently more tax-efficient than traditional mutual funds because of their increasingly specialized nature, they can occasionally leave investors open to a big tax hit.