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Global X Nasdaq-100 Covered Call ETF (QQCC $13.41)
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Global X Enhanced Nasdaq-100 Covered Call ETF (QQCL $25.50)
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JPMorgan US Equity Premium Income Active ETF (JEPI $25.70)
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JPMorgan Nasdaq Equity Premium Income Active ETF (JEPQ $28.23)
Q: Regarding the monthly distributions paid by these ETF's, are these subject to 15% witholding tax or net of them since the etf's trade in Canada? Thx
5i Research Answer:
Since the underlying holds US based companies, distributions will be subject to withholding tax outside of an RRSP.
Within an RRSP, JEPI and JEPQ are likely the most efficient to hold. The Canadian listed ETFs would pay witholding taxes at the fund level so the investor might not 'see it' in the same way but it would still have an impact compared to JEPI/JEPQ. Outside of an RRSP, the end treatment should largely be the same between the ETFs.