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Global X S&P 500 Index Corporate Class ETF (HXS $94.73)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.40)
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Vanguard FTSE Developed All Cap ex North America Index ETF (VIU $44.98)
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Vanguard Total Bond Market ETF (BND $73.58)
Q: Hello, can you please confirm these 2 ETF would not be subject to Withholding Tax? Also, can you please recommend 2 diversified stock ETF for exposure outside Canada which would not be subject to Withholding Tax, with decent dividend and buy and forget type of security. Thank you.
5i Research Answer:
XHY and BND both hold bonds directly and thus should not incur withholding taxes. Note though we have seen brokers do some strange things with taxes and then reverse their errors.
International stock ETFs may have withholding taxes, but it depends on their holdings. Some countries have tax treaties with Canada, some do not. HXS will not as it does not make distirbutions. VIU is a solid international fund but may have some (its positions will vary). But its yield is 2.19% so the impact should be quite small.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.