No, capital gains distributions are taxable and kind of the exception to the rule. If you own shares in a Regulated Investment Company (RIC), such as an ETF or mutual fund or a Real Estate Investment Trust (REIT) and they make stock sales that trigger capital gains, they report that as income to the shareholders, even if you do not sell any shares of the REIC or RIT.
For more information, see the IRS's tax topic on this topic.
