Q: Hello Folks:
We are seniors who would like to place 200,000 from a 1,300,00 investment account (all stocks) into a top rated Canadian based S&P 500 index fund. Another good alternative may be Berk. B. shares. Growth is more than income as they will reside in our TFSA accounts. I do understand Vanguard & Berk. B. good options, however have little practical knowledge; particularly with taxation issues.
You folks are truly amazing!!!!
brian
We are seniors who would like to place 200,000 from a 1,300,00 investment account (all stocks) into a top rated Canadian based S&P 500 index fund. Another good alternative may be Berk. B. shares. Growth is more than income as they will reside in our TFSA accounts. I do understand Vanguard & Berk. B. good options, however have little practical knowledge; particularly with taxation issues.
You folks are truly amazing!!!!
brian
5i Research Answer:
We like BRK.B certainly, but as a single company (even though it is diversified) it is different than an ETF. For a Canadian traded fund we would suggest VFV for S&P 500 exposure. In a TFSA there will be 15% withholding taxes on any US dividends. However BRK.B does not pay dividends. Yield on VFV is 1.29% currently so the withholding tax would cost 0.1935%. We would also consider HXS. It is a quality total return S&P 500 fund but does not pay dividends (it converts these to capital gains with derivatives) so there are no withholding taxes.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.