In here it is stated that
An investor holding mutual fund shares in a taxable account may owe tax on any net capital gains realized from the sale of his fund shares during the calendar year. In addition, he may also have to pay taxes on his proportionate share of the fund's capital gains. The law requires a mutual fund to distribute capital gains to shareholders if it sells securities at a profit that cannot be offset by losses
Is this the same for ETFs? In other words, if the funds sell some of the goods it is holding, do investors need to pay capital gain taxes proportional to their shares in the ETF?
Since the index fund needs to distribute "dividend" to its investors if some of the goods are sold at a net gain, does this mean that the investors will pay capital gains tax when the goods are sold and then again when they receive the "dividend" from the fund?