Q: I get that HXS is a tax-efficient option for high earners in a non-registered account but are the higher fees (e.g., swap fee) worth it just to avoid the 15% withholding tax in a TFSA?
5i Research Answer:
We show a total expense ratio of 0.11% so regardless, the fees aren't materially higher than other options out there. It does help to defer taxes related to distributions as well. Overall, at lower dollar sums or if not particularly sensitive to taxes, any benefit is likely not overly noticeable.