- As of Aug 31, 2026, 73 income ETFs write options on an index, which are Section 1256 contracts, out of 353 whose options ETFIQ has read.
In plain words
A Section 1256 contract is a tax category for certain options and futures, including options on a broad stock index such as the S&P 500. The fund marks it to market at year end and treats the gain or loss as 60% long term and 40% short term.
Options on a single stock or an ETF share do not get this treatment. ETFIQ reads each income fund’s latest N-PORT: of 353 funds read, 73 write index options, 105 write on single stocks and 93 on ETFs. This is a fact about the fund, not tax advice, and ETFIQ links the IRS form to check it.
Questions
- Does a Section 1256 fund pay less tax?
The fund’s tax character can differ. That is not advice about your tax. Ask a tax professional.
- How does ETFIQ know which options a fund writes?
From the fund’s latest N-PORT holdings, which list each option and its underlying.
- Where do I see this for a fund?
On the tax block of every income fund page, with the filing date.