Accounting and tax treatment of exchange-traded funds

Exchange-traded funds (ETFs) are investment products that were introduced on the North American markets in 1993 to track the performance of an index or a basket of stocks which have become a huge success and are among the most heavily traded securities in the world today. This article outlines the main characteristics of ETFs, compares them with similar investment tools and addresses the accounting and tax treatment that may apply to such financial instruments under French generally accepted accounting principles.