Active ETFs may have better tax advantages because the fund manager can sell the lowest-basis stocks via in-kind stock transfers through the creation and redemption process. This helps systematically reduce the tax exposure for investors. As with traditional mutual funds, there may be tax consequences later in the year, so stay tuned to the fund.
Until ETFs have experience over a number of economic cycles, the analysis for tax advantages will be incomplete. As with traditional mutual funds, ETFs have had end-of-year distributions, something that wasn’t supposed to happen when ETFs were initially introduced. So beware of the supposed tax advantages of ETFs until ETFs have been in existence for approximately 15 years, or more.