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  5. ZSP: I want to invest in the S&P 500 in my unregistered accounts with HXS. [BMO S&P 500 Index ETF]
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Investment Q&A

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Q: I want to invest in the S&P 500 in my unregistered accounts with HXS. Are you comfortable holding this total return ETF? Are there any known government issues with total return ETFs - I recall the Fed Government challenged these in the past? In registered family accounts I plan to use VFV and/or ZSP - do you prefer one over the other? For safety, would it be a good idea to use both?

Asked by Grant on November 15, 2022
5i Research Answer:

ZSP and VFV are essentially identical and have the same fees. We are indifferent and think only one is needed. The government did challenge total return ETFs a few years back and Horizons made adjustments. We have done a lot of work on them and are very comfortable. Even if tax laws were to change again, there would be no 'incremental' loss, they would simply be taxed as other ETFs. In such a situation (which we see as highly unlikely) the fund would likely simply pay distributions and cancel its swap arrangements. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.