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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.43)
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iShares Convertible Bond Index ETF (CVD $17.88)
Q: Today you responded to a question comparing CVD to CPD. You discussed the potential capital gains of both, but you did not compare their income. Income from CPD is treated as dividends, and so takes advantage of the dividend tax credit. It occurred to me that CVD distributions would be treated strictly as income and so would not be as tax efficient as the income of CPD in a non-registered account. So would you agree that to maximize income, CPD would be be the best choice? Thank you.