-
Global X Nasdaq-100 Index Corporate Class ETF (HXQ $99.27)
-
BMO Nasdaq 100 Equity Index ETF (ZNQ $111.91)
Q: I'm looking for an unhedged Canadian etf that tracks the nasdaq 100. When comparing ZNQ to HXQ I see that ZNQ doesn't pay a dividend but rather reinvests it. Also it has cheaper fees than HXQ. But HXQ pays a small dividend. The returns over time seem marginally better for ZNQ. But when the div's are factored in, is this more of a wash or does the tax preference of no div's help more? This would be in an RESP for reference. Thx
5i Research Answer:
The two ETFs are quite similar, hold their US stocks directly, and being in an RESP, there is no tax advantage one way or another. We might side with HXQ here just for the slightly lower fee.