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Archive | Foreign Withholding Tax

Norbert’s Gambit at RBC Direct Investing

US-listed ETFS are the most tax-efficient way to invest in foreign equities within your RRSP account.  The funds also tend to have lower annual fees than Canadian-listed ETFs.  However, they must be bought and sold in US dollars, and if you have to exchange your Canadian dollars for greenbacks, it can be extremely costly.  Many […]

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Taxation of Foreign Income in a Corporate Account

Dan Bortolotti’s recent blog post raised a number of questions from his readers concerning the impact of foreign withholding taxes within a corporate account.  This is a hot topic, as many successful professionals are choosing to save within their corporation.  Couch Potato investors often allocate 40% or more to foreign stocks, so it’s important for […]

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Perfecting the Perfect Portfolio

The Couch Potato portfolio has it all – low fees, broad-diversification, and simplicity. There’s not a whole lot of room for improvement, but with a few tweaks, investors can lower their costs even further. One such improvement can help mitigate the drag from foreign withholding taxes levied on dividends paid from US and other international […]

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Foreign Withholding Taxes in International Equity ETFs (Revisited)

In August 2014, BlackRock Canada announced that they were changing the investment strategy of the iShares Core MSCI EAFE IMI Index ETF (XEF) in order to reduce the overall amount of foreign withholding tax levied on the fund.  XEF would no longer gain its international stock exposure by holding the iShares Core MSCI EAFE ETF […]

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War of the Worlds (ex Canada)

The competition has been heating up in the global equity ETF space.  First, Vanguard released the Vanguard FTSE All-World ex Canada Index ETF (VXC), which gave Canadians instant exposure to large and mid-sized companies throughout the world in a single trade (excluding Canadian companies).  VXC is a “fund of funds” ETF, meaning that it simply […]

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Vanguard Lowers Their Fees…Again

The race to the bottom continues as Vanguard Canada recently lowered the fees on 11 of their ETFs. The cost that investors will pay to construct a balanced portfolio of Vanguard ETFs is now just 0.13% (the same cost as a similar portfolio from iShares, and slightly cheaper than one from BMO). iShares and BMO […]

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