Q: on friday i asked:
why do 4 different S&P 500 index funds all have different dividend yields?
To simplify, if we narrow it down to just VFV and VOO, it is the 15% witholding tax on VFV that accounts for the difference. In an RRSP VOO gets exempt.
It seems like we are getting punished for purchasing a Canadian domiciled fund.
So then it comes down to picking the best of 2 bad options:
VOO and pay roughtly 1.5% exchange on the purchase and then again on the sale
or
VFV and always pay a 15% witholding tax on dividends.
Have i misconstured anything?
Is it still a cointoss between VFV and VOO
why do 4 different S&P 500 index funds all have different dividend yields?
To simplify, if we narrow it down to just VFV and VOO, it is the 15% witholding tax on VFV that accounts for the difference. In an RRSP VOO gets exempt.
It seems like we are getting punished for purchasing a Canadian domiciled fund.
So then it comes down to picking the best of 2 bad options:
VOO and pay roughtly 1.5% exchange on the purchase and then again on the sale
or
VFV and always pay a 15% witholding tax on dividends.
Have i misconstured anything?
Is it still a cointoss between VFV and VOO
5i Research Answer:
VFV is not as efficient as VOO for withholding tax purposes, but the difference is fairly minor. Regardless, performance numbers and yield are reported pre-tax.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.