A Senate Democrat proposal to end a tax break on exchange-traded funds becomes “pretty unlikely,” Dave Nadig, ETF Trends chief investment officer and director of research, told CNBC’s ETF Edge this week.

“I think the chances are pretty slim,” said Nadig in a Monday interview. “It’s easy to look at that and say, ‘Well, my gosh, that’s one thing that rich people take advantage of.’ In fact, smaller investors benefit the most from it. “

The chairman of the Senate Finance Committee, Ron Wyden, D-Ore. The proposed law proposes to stop the in-kind transaction tax break, which allows ETF managers to sell positions without incurring capital gains taxes for end investors. It would exempt ETFs in tax-privileged retirement accounts.

“It puts an ETF and a traditional mutual fund pretty much on par, which means there is a taxable event when someone has to sell within the portfolio,” said Nadig.

Although Wyden said the plan applies to “taxable accounts of the wealthiest investors,” they have many options for gaining tax breaks outside of ETFs, which “by no means” is their primary option, Nadig said.

“It’s pretty regressive and because of that I think it’s pretty unlikely to go away,” he said. “But the reason? To try to increase revenue, obviously.”