-
BMO S&P 500 Index ETF (ZSP)
-
Global X S&P 500 Index Corporate Class ETF (HXS)
-
iShares Core S&P 500 Index ETF (XUS)
-
Vanguard S&P 500 Index ETF (VFV)
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.
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.
5i Research Answer:
MAW108 has lagged the S&P500 in every time period up to 10 years. Fees are a part of it, of course, but the fund also missed many of the Magnificient seven stocks. Mawer is generally a conservative-style manager, and while performance has lagged we would consider MAW108 different than the S&P overall. But, we would still be comfortable with a tax-free replacement in a registered account. VFV will have withholding taxes in a TFSA. HXS does not pay any distribution so withholding taxes do not apply.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.