skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Good morning,

I am not crystal clear on the most tax efficient account to hold each of the above listed ETFs and before moving any of them to another type of account, I would very much appreciate your guidance on the most tax efficient type of account to hold each of the above listed ETFs.

The above listed ETFs are all held in our family Registered (RRSP/TFSA/RESP) and Non-Registered accounts.

Thank you and I'll await your sage advice.
Read Answer Asked by Francesco on March 11, 2024
Q: Dear 5i
I`m sure i`ve asked this question before but i cannot find your answer to this question .
Do you have to include ETF's that are Canadian listed that hold US stocks such as HXS and ZSP as part of my foreign reporting re foreign assets on my taxes ?
Also i have 3 ETF's that apparently have Trust or Partnership income (ZLB,CDZ,ZSP ). I have not received this notification before from my brokerage firm so i'm assuming this is a relatively new structuring of these particular ETF's . That said , is trust and partnership income taxed more or less than other forms of income ? Are you taxed on this income derived from capital gains , dividend or interest income ?
Bill C
Read Answer Asked by Bill on March 04, 2024
Q: Can you please suggest a few ETF's for a young investor who has recently opened a brokerage account.
My 30 y/o son will be transferring funds currently held at his bank. (TSFA , RESP, RRSP accounts) He is looking for long term investments options.

We as grand parents have started a RESP for each of the grandchildren. Looking after their first year RESP contributions. Currently invested in HXS and a small VFV position.
Can you please give some options for :
Thank you
Read Answer Asked by Gord on February 20, 2024
Q: You recently recommended US/CA equities at 65%/35%. With US ETFs and CDRs I am only at 20% US. I am considering significantly increasing my holdings of HXS, VFV, and HXQ to make up the shortfall of 45% US. Do you see any downside to this approach?
Read Answer Asked by Dennis on February 13, 2024
Q: I have over 8000 shares of VFV in my NR, up about 50%. I am looking to hold for 20 years and not touch them. Unbeknownst to me when I bought them, I now realize there is a tax disadvantage compared to HXS. How much performance drag will occur from the tax disadvantage, and would it be worth the capital gains tax to sell and switch?

I could sell and incur huge capital gains on these shares, but I am not sure if it would be worth paying the capital gains to sell them and buy HXS.

My alternate plan going forward was to buy HXS with my dividends, instead of VFV.
Read Answer Asked by Joey on February 12, 2024
Q: There are a number of Canadian based NASDAQ100 and S&P500 ETF's. Which NASDAQ100 and S&P500 ETF would you prefer, or would be "best", for a TFSA account, and why? Would investing within an RRSP or in a non-registered account alter your selections and if so, why would that be? Thanks.
Read Answer Asked by Bruce on February 09, 2024
Q: Please recommend 5 ETF's for a young investor just starting her career and investing in her first TFSA. Thank you in advance.
Read Answer Asked by Helen on February 08, 2024
Q: Good morning,

I am looking for the best ETF to hold in my TFSA account that follows the S&P 500 index along with the reasons for your particular preference?

I understand that since HXS does have any distributions, there is no withholding tax to be concerned with which is an advantage. On the other hand, due to the distinct tax efficient structure of HXS, the MER on the HXS is higher than VFV and other similar ETFs that track the same index.

Given that both ETFs track the same index is there a clear winner for a TFSA account?

Thank you and I'll await your sage advice.
Read Answer Asked by Francesco on February 01, 2024
Q: In a recent answer your wrote HXS we like but many investors do not understand the swap/derivatives so we often mention it after other ETFs. I agree, I did an internet search to try to understand the swap/derivatives procedure, but am still confused. I understand the tax advantages of HXS held in a non-registered account, but if VFV was held in a RRSP is it not better to receive VFV capital gains PLUS dividends then just HXS capital gains & No dividends. For both VFV & HXS track the same S&P 500 Index, so their performance should be the same, less different MER charges. Thanks … Cal
Read Answer Asked by cal on January 19, 2024
Q: HXS has has a management fee of .10 but as they state this does not include a swap fee of approximately 30 bps. Is the actual management fee .40? Is the swap fee related to the total return nature of this ETF? I’m looking for an S&P ETF to hold in my TFSA and HXS seems like a great option as I wouldn’t be subject to withholding taxes. Do you feel HXS is a better choice then VFV for a 10+ year hold inside a TFSA due to the savings on withholding taxes?
Read Answer Asked by Anthony on January 19, 2024
Q: Good morning,

I own a substantial amount of MAW 108 in my Non Registered, TFSA and RRSP accounts.

After reviewing the numerous questions relating to VFV ETF and closely examining the annual performance of MAW 108 over the last 15 years, it is clear to me that VFV ETF has performed much better on the whole over a long period and that VFV or HXS would have been a better choice .

Given that there would be substantial capital gains tax incurred by replacing MAW 108 with VFV ETF or HXS ETF in my Non Registered account and therefore not an appealing option, what are your thoughts on:

Q1. Replacing MAW 108 with VFV or HXS in my TFSA and RRSP accounts;

Q2. Are there any withholding tax considerations in holding VFV or HXS in my TFSA and RRSP accounts?

Q3, Is VFV your preferred recommendation over HXS ETF, ZSP ETF, XUS ETF for holdings in a TFSA and RRSP account?

Thank you and I will await your usual sage and valuable advice.
Read Answer Asked by Francesco on January 17, 2024
Q: Rick Reider is managing BRTR a new income etf. Does it pay a dividend or does it operate as a total return instrument? Are there any income etf's trading in the US that instead of paying a dividend provide capital gains instead similar in result to the corporate class structure from Horizons? Lastly does Horizons have any US dollar income etf with a corporate class structure and if so would you recommend it? Thank you.
Read Answer Asked by Ken on December 18, 2023
Q: MoneySense recommended HXT as one of the best Canadian ETFs for years, but not in 2023. Is there any concerns that the government may crack down on Horizon's Total return funds that do not pay out any dividends?
Read Answer Asked by Grant on November 24, 2023
Q: Good morning - can you suggest some US S & P 500 ETF possibilities along with a recommended choice. Many thanks

Read Answer Asked by alex on November 06, 2023