Q: Hi There, I am interested in considering buying TTP and/or TQCD ETF's for my NonReg account. TTP is the passive Canadian index and TQCD is supposedly actively managed. Is there somewhere that can provide me information on the tax efficiencies of these two ETF's. I would like to get an idea of how they might impact my yearly tax return. Many thanks.
5i Research Answer:
TTP owns only Canadian equities. Tax consequences of ETFs are passed on to unitholders. Dividends will be eligible dividends and no interest is earned.
TQCD also only owns Canadian stocks. As an active fund it may see more capital gains, but this will vary by year.
TD provides a distribution tax summary of its ETFs here (download the distribution summary).