First let me ask :How often do XEF pay distribution?
Second question I see it on my statement as being interest is it not supposed to be dividend?
For a third question, in a drip situation I see a - sign for say -$1000 and a + say $1100. What does that - operation mean in term of tax application. What amount is beeing taxed?
Thank you to continue educating us DIY investors
Yves
Yes, XEF pays a distribution, with a current indicated yield of 3.33%. The last payment was June 30, at 71.2 cents per unit. It pays twice a year. ETFs 'pass through' the tax consequences of income to unit holders. Income can be classified as capital gains, interest, dividends and return of capital. XEF owns only equities, so it is not likely interest. But the classification from a broker does not matter, it is the tax form at year end that does. In 2024 the majority of XEF's distributions were considered 'foreign income'. Only the actual dollar amount of the distribution is taxed. The last question we would need more information. Generally a broker will show a dividend dollar amount coming in, and then a unit purchase under the DRIP plan showing money being debited in exchange for more units.