Updated

Treasury Secretary Scott Bessent and the IRS issued a warning this week targeting an ETF-based strategy that wealthy investors have been using to shield capital gains income from taxation. The move signals heightened regulatory scrutiny of tax-avoidance techniques embedded in increasingly popular exchange-traded fund structures. The crackdown could affect fund providers and high-net-worth investors who have relied on the strategy, and may prompt changes to how certain ETFs are structured or marketed going forward.