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Global X Canadian Oil and Gas Equity Covered Call ETF (ENCC)
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Hamilton Energy YIELD MAXIMIZER TM ETF (EMAX)
Q: I'm leaning towards emax in a cash account to diversify with the US holdings even though encc has a higher yield.
What are the tax implications of emax vs. encc.
emax writes in the money options on 30% of the holdings
I cannot find this data for encc
Thank you
What are the tax implications of emax vs. encc.
emax writes in the money options on 30% of the holdings
I cannot find this data for encc
Thank you
5i Research Answer:
EMAX is too new and we do not have full tax info. ETFs 'pass through' taxes to unit holders, and these will be taxed as a combination of dividend, capital gains and return of capital. ENCC focuses on Canadian stocks so will have a higher portion of eligible dividends because of this.