View Full Version : XSP vs VV taxation
2009-04-23, 08:48 AM
Is there a difference in taxation between XSP (Ishare) and VV (Vanguard) inside an RRSP, and outside?
Are they somehow comparable?
2009-04-23, 09:15 AM
The hedge to CAD$ does not affect the distributions. The holdings payout in USD - so you'll get taxed on them as USD payouts.
Outside the RRSP, this means they are fully taxed at your marginal rate.
Inside the RRSP, they won't be taxed at all.
2009-04-23, 02:37 PM
Slightly off topic, but Vanguard ETFs are actually a share class of the corresponding Vanguard Index Mutual Fund. They *can* carry a tax liability of the mutual fund inside the performance of the ETF. Structurally that is the case, but it has yet to be a problem.
An ancillary benefit (for americans) is that if you owned the index mutual fund from vanguard, you can convert to the ETF structure tax-free, since it is just switching from a share class of the fund to another share class of the same fund.
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