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Global X S&P 500 Index Corporate Class ETF (HXS)
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Global X S&P 500 Index Corporate Class ETF (HXS.U)
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Global X S&P/TSX 60 Index Corporate Class ETF (HXT)
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Global X S&P/TSX 60 Index Corporate Class ETF (HXT.U)
Q: Good morning,
I currently own HXS and HXT in most of my RESP/TFSA/RRIF and NON - REGISTERED accounts.
In completing an annual performance review of my family portfolio, I noticed that the difference in calendar year performance between HXS and HXS.U is quite significant. In fact for 2024 the calendar year performance of HXS was 35.04% while the calendar year performance of the HXS.U was 24.48%.
I assume that most of the difference can be attributed to the difference between the Can $ and US $.
Q1. If one believes that the CDN$ will remain depressed compared to the US$ for the foreseeable future, which version of these Global X ETFs, do you recommend holding in RESP/TFSA/RRIF accounts where taxes are not an issue.
Q2. Which type of accounts (RESP/RRIF/TFSA/Non-Registered) stand to benefit the most from holding these Total Return ETFs and in what order?
Thank you and I'll await your response.
Francesco
I currently own HXS and HXT in most of my RESP/TFSA/RRIF and NON - REGISTERED accounts.
In completing an annual performance review of my family portfolio, I noticed that the difference in calendar year performance between HXS and HXS.U is quite significant. In fact for 2024 the calendar year performance of HXS was 35.04% while the calendar year performance of the HXS.U was 24.48%.
I assume that most of the difference can be attributed to the difference between the Can $ and US $.
Q1. If one believes that the CDN$ will remain depressed compared to the US$ for the foreseeable future, which version of these Global X ETFs, do you recommend holding in RESP/TFSA/RRIF accounts where taxes are not an issue.
Q2. Which type of accounts (RESP/RRIF/TFSA/Non-Registered) stand to benefit the most from holding these Total Return ETFs and in what order?
Thank you and I'll await your response.
Francesco
5i Research Answer:
The C$ fell nearly 9% last year so this expains most of the difference. 1) These funds are not hedged, so net performance after f/x moves should be very similar. Typically, we would prefer to own US assets in US dollars, but HXS.U is not that liquid and we would thus prefer HXS. With no distributions, there are no withholding taxes on either. Assuming 'growth', the TFSA is likely the best account.