Investment Q&A

Q: I currently have some cash in RRSP USD and RRSP CAD accounts. I also have some US cash for Non-Reg USD account.

I am wondering how to allocate VIG/VGG/ZDY amongst these accounts to minimize FX fees while also minimizing taxes.

For e.g. if I put VGG or ZDY in RRSP CAD, I believe a 15 per cent withholding tax applies to dividends if US stocks are held via a TSX-listed ETF (yes, even within RRSP account)!

If I put VIG in RRSP USD, I will have to pay the 15-percent withholding taxes on the US dividends.

Please do you have any recommendations on how to avoid paying these taxes?

Also given that VGG is listed in TSX and tracks the VIG ETF in the US, I am wondering whether there is any difference in putting VGG in RRSP CAD account or should I prefer putting VIG in the RRSP USD account (given smaller MER).

Thanks!

Q: For ETF's - VDU, ZDY & ZGI- is it more suitable to have them inside my RRSP or TFSA?

Q: In a previous answer you said -
5i Research Answer:

We have nothing against ZDY, it is a large liquid ETF with OK fees of 0.34%. Performance (3 years annualized 22.6%) has been solid.
But my watchlist shows ZDY with a 3 yr return of 9.8%. What is the difference? Which one is correct?
Wayne

Q: Each year I have maximized my TFSA contribution and have a total value of $80,000 consisting mainly of small cap stocks such as BYD.UN, PPY, CRH, HNL, and tend to rotate stocks periodically. With my advancing age I have toyed with the idea of simplifying the management of my TFSA by holding a single ETF, that being ZDY. Your insight would be appreciated.

Q: Hi Team, In my RRSP, I'm Currently holding 30% weight in U.S.market with 20% in VUN (Vanguard Total U.S. Market ETF.) and 10% ZDY (BMO U.S. Dividend ETF) given the potential of rising rates, would I need to get rid of ZDY which has performed well and replace it with VGG.Is there something else you would recommend. Thanks-you! Sam