skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. ZSP: Hi 5i, For a US ETF in a non-registered account, would it be more tax efficient to hold HXS because it doesn't pay a distribution, versus ZSP which does? [BMO S&P 500 Index ETF]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i,

For a US ETF in a non-registered account, would it be more tax efficient to hold HXS because it doesn't pay a distribution, versus ZSP which does? Would you recommend ZSP over HXS for any particular reason?

Thanks
Asked by Tara on December 05, 2024
5i Research Answer:

ZSP holds the individual stocks, so there is no withholding tax within an RRSP, but it still applies outside of an RRSP. This is one advantage that ZSP has over HXS, but outside of an RRSP, holding HXS would be more tax-efficient upfront than ZSP. Once shares of HXS are sold, capital gains tax will be applied. 

Let us help YOU reach your financial goals today!

Start your FREE trial today and enjoy all the benefits of a 5i Membership including:

  • Access to a team of experts ready to answer your investments question 
  • Instant access to over 100,000 archived questions
  • A community of like-minded investors
  • Peace of mind knowing that 5i Research has only YOUR best interests in mind