Exchange traded funds (ETFs) are generally considered to be tax efficient. Unlike traditional mutual funds that are actively managed, ETFs don't involve a lot of reshuffling throughout the year. With constant selling, ETFs are less likely to trigger capital gains taxes until you, the shareholder, actually sell your shares.

However, some ETFs like the gold ETF or silver ETF are taxed at the collectibles tax rate (28%) instead of the long-term capital gains rate of 15%. Bond ETFs are also taxed at a less desirable income tax rate, namely the rate you pay for regular income.

So what can you do to ease your tax burden? All other things equal, it can work to your advantage to buy gold, silver, and bond ETFs within a tax-sheltered account such as an IRA or 401K. Even REIT ETFs might do better in a tax-deferred account over the long-term because of the high taxable income they generate. Other, non-income generating ETFs are then the ones that you would select for your taxable accounts.