Q: I am looking for a short term safe investment for Canadian and US cash in a non-registered account. CBIL according Global X website holds 0-3 month Canadian government bonds, but when purchasing on Questrade, 0-3 mo U.S. T-bill pops up - is CBIL US or Canadian bonds? With UBIL.U in a non-registered account will there be US withholding tax on the estimated 5.25% yield? Thanks!
5i Research Answer:
CBIL invests in Canadian short term treasury securities. On UBIL, All Canadian-listed ETFs seeking exposure to U.S. bonds are generally exempt from the U.S. withholding tax on qualified interest income, regardless of whether or not the ETF is held in a taxable or non-taxable investment account.