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BMO MSCI USA High Quality Index ETF (ZUQ)
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BMO S&P 500 Index ETF (ZSP)
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iShares Core S&P 500 Index ETF (XUS)
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Vanguard S&P 500 Index ETF (VFV)
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Vanguard S&P 500 ETF (VOO)
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ISHARES TRUST (IUSG)
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iShares Core S&P 500 ETF (IVV)
Q: Hello Peter and 5i Team! it is an RESP account.
A new granddaughter born this year has a tiny new RESP in her name. It started with 3 shared of IUSG, and then, realizing that commissions were a large percentage of such small purchases, we added 2 shares of ZUQ, which has no commission.
For future small contributions, I am looking at these 4 ETFs, based on 3-year average annual return. I am specifically wondering about MER vs Tax efficiency:
ZUQ: +13.44%/yr, MER=0.33%, yield=0.60%, holds US stocks directly
VFV: +13.36%/yr, MER=0.09%, yield=0.99%, holds US stocks indirectly through VOO
XUS: +13.36%/yr, MER=0.09%, yield=1.03%, holds US stocks indirectly through IVV
ZSP: +13.30%/yr, MER=0.09%, yield=0.94%, holds US stocks directly
(as far as I know, none of these are hedged)
Generally I gravitate to low MERs, so perhaps ZUQ is not the best choice.
I recall a comment on 5i that the indirect holding of US stocks means that the withholding tax is withheld when the underlying US ETF pays dividends to the Canadian holding ETF (e.g. VFV get the dividend from VOO, less 15%). So holding in a TFSA won't avoid it, whereas it would be avoided with, say, ZSP in a TFSA.
So, my question is: do the 3-yr performance numbers take all of this into account? I am guessing not... withholding tax efficiency depends on the holders nationality, sheltered status, etc.
Bottom line - which of these ETFs would you recommend for a grandchild with a time horizon of many decades, for optimal performance?
Thanks for your excellent insights and wisdom!
A new granddaughter born this year has a tiny new RESP in her name. It started with 3 shared of IUSG, and then, realizing that commissions were a large percentage of such small purchases, we added 2 shares of ZUQ, which has no commission.
For future small contributions, I am looking at these 4 ETFs, based on 3-year average annual return. I am specifically wondering about MER vs Tax efficiency:
ZUQ: +13.44%/yr, MER=0.33%, yield=0.60%, holds US stocks directly
VFV: +13.36%/yr, MER=0.09%, yield=0.99%, holds US stocks indirectly through VOO
XUS: +13.36%/yr, MER=0.09%, yield=1.03%, holds US stocks indirectly through IVV
ZSP: +13.30%/yr, MER=0.09%, yield=0.94%, holds US stocks directly
(as far as I know, none of these are hedged)
Generally I gravitate to low MERs, so perhaps ZUQ is not the best choice.
I recall a comment on 5i that the indirect holding of US stocks means that the withholding tax is withheld when the underlying US ETF pays dividends to the Canadian holding ETF (e.g. VFV get the dividend from VOO, less 15%). So holding in a TFSA won't avoid it, whereas it would be avoided with, say, ZSP in a TFSA.
So, my question is: do the 3-yr performance numbers take all of this into account? I am guessing not... withholding tax efficiency depends on the holders nationality, sheltered status, etc.
Bottom line - which of these ETFs would you recommend for a grandchild with a time horizon of many decades, for optimal performance?
Thanks for your excellent insights and wisdom!
Q: I have a significant amount of my USD portfolio in VOO, I won’t need the money for 20 years. I’m trying to decide where to invest new USD with current stock market valuation. With a long term horizon any reason I can’t keep buying VOO?
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iShares Russell 2000 Growth ETF (IWO)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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iShares Core S&P/TSX Capped Composite Index ETF (XIC)
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Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
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Vanguard S&P 500 ETF (VOO)
Q: Greetings!
What ETFs would you recommend to make up someone's entire investment portfolio with the intentions to add to them monthly?
Thank you very much.
What ETFs would you recommend to make up someone's entire investment portfolio with the intentions to add to them monthly?
Thank you very much.
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