Bill- Well, I've given it some more thought, and still think you are wrong in thinking reinvesting capital gains gives you an increased income stream. The people investing in ETFs, which typically pass off their capital gains to institutional investors, also seem to consider capital gains distributions as a neutral factor

If you invested in an Index 500 mutual fund, and re-invest the capital gains, you will have the same exact same income stream as an investor in an Index 500 ETF that has never distributed any capital gains. I'm pretty sure that is correct...I sure hope so since I have embraced ETF's wholeheartedly.

-dale