Qualified dividends are dividends received by a fund from a stock, provided that the fund has held the stock for a required holding period. Mutual funds may pass through to investors any qualified dividends it receives. At the fund level, these may be applied to ordinary income and/or short-term capital gains distributions.
Qualified dividends are taxed at the long-term capital gain rates. To qualify for these reduced rates, you must own the mutual fund's shares for a period of 61 days or longer. That period must include the date the fund distributed the dividends.
The table below reflects the percentage of each fund's distributions that are considered qualified.
|Fund Name||Percentage to Apply
to Ordinary Dividends*
|Avantis U.S. Equity||82.08%|
|Avantis U.S. Equity ETF1||100.00%|
|Avantis U.S. Small Cap Value||76.84%|
|Avantis U.S. Small Cap Value ETF1||100.00%|
|Avantis International Equity||100.00%|
|Avantis International Equity ETF1||100.00%|
|Avantis International Small Cap Value||34.88%|
|Avantis International Small Cap Value ETF1||85.80%|
|Avantis Emerging Markets Equity||100.00%|
|Avantis Emerging Markets Equity ETF1||100.00%|
* Ordinary dividends includes net investment income distributions and short-term capital gain distributions.
1 This fund is an actively managed Exchange Traded Fund (ETF) that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.