Re: Mutual Fund/ETF dist. in Taxable Account
Funds generate dividends and capital gains/losses.
Some funds are 'tax managed' and offset gains with limited selling and offsetting loss selling.
Otherwise, any qualified dividends (most dividends paid by stocks in the fund) thrown off from that fund are taxed in that tax year at 5 or 15%, depending on your income level. Unqualified dividends (most bond dividends and cash instrument payouts) are taxed as regular income at your regular rate. Long and short term capital gains thrown off the fund are taxed in that tax year as plain old long and short term gains, just like stock sales.
There are some minor exceptions to these rules.
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.