Q: I just noticed that XUU is an ETF of ETFs. Does increase the possible problems with ETFs, such as tracking errors, fees, and liquidity? Does it add further issues? Also, what are the taxation implications?
Thank you once again.
Thank you once again.
5i Research Answer:
There is an additional small level of withholding tax for Canadian funds that do not hold US securities directly. Because the underlying funds are very liquid, we would not expect much tracking error or performance 'drag'.