One Senate Democrat’s proposal to end a tax break for exchange-traded funds is “fairly unlikely to go,” ETF Traits chief funding officer and director of analysis Dave Nadig advised CNBC’s “ETF Edge” this week.

“I believe the probabilities are pretty low,” Nadig mentioned in a Monday interview. “It is easy to have a look at this and say, ‘Nicely, gosh, this can be a factor that wealthy guys are profiting from.’ It is really smaller buyers that profit essentially the most from this.”

Crafted by Senate Finance Committee Chairman Ron Wyden, D-Ore., the bill suggests stopping the tax break on in-kind transactions, which allow ETF managers to promote out of positions with out triggering capital beneficial properties taxes for the top buyers. It might exempt ETFs in tax-deferred retirement accounts.

“It places an ETF and a standard mutual fund just about on the identical footing, which implies if any individual has to promote contained in the portfolio, there is a taxable occasion,” Nadig mentioned.

Although Wyden mentioned the plan applies to “taxable accounts of the wealthiest buyers,” they’ve some ways to achieve tax benefits exterior of ETFs, that are “under no circumstances” their main means of doing so, Nadig mentioned.

“That is fairly regressive and for that motive I believe it is fairly unlikely to go,” he mentioned. “However the motive? To attempt to elevate income, clearly.”