Q: Can you tell me a little about this etf please? How are the dividends handled? I'd there a withholding tax?
Thanks
Thanks
5i Research Answer:
HBA has $116M in assets, fees of 0.55%, and a three-year annualized return of 12.13%. YTD is 3.31%. Indicated yield is 5.84%. The ETF tries to replicate the Solactive Australian Bank Equal Weight Index. Dividends are taxed as 55% foreign income and 45% capital gains (2022). Australia has a 15% withholding tax on dividends, but Hamilton's website notes only that it is foreign income, and does not classify it as 'dividends'. Hamilton shows no tax withheld in 2022. The ETF has been one of the better financial ETFs in Canada. We would consider it fine for investors seeking specific sector exposure to Australia.