Q: I hold HXDM in my unregistered account (MER: 0.22 + max 0.3 swap fee) and am looking for an international ETF for developed countries (ex. Canada & US), that like HXDM does not include small caps, only medium and large cap stocks. I could use HXDM but fees are high and AUM is only 477M, however, there is no withholding tax with HXDM - your comments appreciated.
Thanks!
Thanks!
5i Research Answer:
We would consider $500M+ certainly 'big enough'. The ETF trades about 20,000 units per day, but the market maker can create/cancel units as demand/supply changes as well. Horizons is the only company offering total return funds, and this can offer good tax benefits to many investors, including, as noted, no withholding taxes. We think for investors looking for total return funds it makes sense, and the higher fee we think is more than offset by the tax benefits (for most).