Quick question about ETFs. I currently own Vanguard VTI, VNQ, and BND, and it was recently suggested to me that these investments are "double-taxed". I was unable to get clarification, so can anyone else shine a light on this? I tried researching why ETFs might have higher taxes, and the only thing I could dig up was qualified vs. non-qualified dividends. It looks like VTI distributes 100% qualified dividends, but VNQ and BND do not. Could that be what the person was referring to? Would the mutual fund versions not have these tax issues?
I guess my real question is this: I originally started with the ETF versions of these funds because I didn't have the minimum for Admiral, but since I do now, is there any reason at all to go through the trouble of switching over to Admiral? Is there any particular way I should be handling the dividends aside from reinvesting them?
Thank you!