Do wash sale rules apply to EFTs?

Yes. Exchange traded funds, or ETFs, are essentially stock, and the wash sale rules apply to stock as well as mutual fund shares and bonds. Thus, a loss on the sale of an EFT cannot be recognized if you acquire substantially identical ETFs within 30 days before or after the date of the sale. What constitutes substantially identical securities is not always clear. Obviously, if you sell ETF X and then reacquire ETF X within the wash sale period, your loss is not immediately recognized. But if you can find a similar ETF from a different company, it may be different enough to allow you to take your loss currently.