Which stocks issue K1?

Which Stocks Issue K-1 Forms?

When investors receive a K-1 form, it typically means they’re invested in a partnership or structure that passes income, deductions, and tax obligations directly to the individual. Unlike standard 1099 forms issued by most stocks and ETFs, K-1s—officially known as Form 1065 Schedule K-1—are commonly associated with certain exchange-traded products, particularly those structured as limited partnerships.

Many of the funds that issue K-1s are commodity-based ETFs or those using futures contracts. For example, funds like UCO (Ultra Bloomberg Crude Oil), BOIL (Ultra Bloomberg Natural Gas), and UGL (Ultra Gold) are structured as limited partnerships and issue K-1s to their investors. Similarly, volatility-focused ETFs such as UVXY (Ultra VIX Short-Term Futures), SVXY (Short VIX Short-Term Futures), VIXY, and VIXM also fall into this category due to their use of futures contracts and partnership structures.

These K-1s can complicate tax reporting, especially for investors used to the simplicity of 1099 forms. The timing can also be an issue—K-1s often arrive later in tax season, delaying the filing process. That’s why many retail investors prefer ETFs structured as corporations (like most stock-based ETFs), which issue 1099s instead.

While these K-1-issuing funds offer unique exposure to asset classes like commodities and market volatility, it’s important to understand the tax implications before investing. Always consult with a tax advisor if you're unsure how a K-1 might affect your return, especially if you hold these in a taxable account.