Good to know! My funds generate relatively small capital gains distributions (most of what I see on my 1099's is from dividends) so I never noticed it.

Edit: Though now that you mention it, I think I must've known this at some point in the past: that ETFs had preferential tax treatment. A while back, I moved my most recent investments to ETFs, even for the "same" fund (example: Vanguard Tech VITAX mutual fund vs VGT ETF) ...

Still, how are ETFs treated differently from a stock?