Or are you better off picking your own ETFs? And, … When restricted stock or RSUs vest, you own the stock outright and have taxable W-2 income for that calendar year, along with your other compensation income. Capital One Aspire Cash World and Aspire Platinum Review, The Ultimate Guide to Safe Withdrawal Rates in Canada (For Any Retirement Age). VEQT offers a solid product comprising of 40% US, 30% Canada, and 30% international (including emerging markets). I think you’ll agree, it’s hard to put a price on that convenience. Q. Does it provide a DRIP? Looking at these numbers alone, XEQT seems like a better choice. Re-balancing multiple ETF's is not an issue for me Thanks In the case of Royal Dutch Shell this will be for ordinary shares of RDSA and RDSB, as well as ADRs Shares. Hence, it is taxable income of the employees under Section 17(1) by classifying them as perquisites. Today’s post helps solve that problem by looking at and comparing Vanguard’s VEQT vs. iShares XEQT vs. Horizons HGRO fund. I buy VEQT in my taxable account. Investing. The only thing I have in my taxable account is a total stock market index mutual fund (Fidelity's Spartan series - comparable to the Vanguard version). We have used the Vanguard Total Stock Market ETF (VTI) as an example. grant to vest). 6 1 16. First, tax losses represent an interest-free loan that defers capital gains taxes you would otherwise owe into the distant future, and can even eliminate them entirely when you die. One important thing to remember about non-taxable accounts is that they might be tax-deferred accounts.� This means that there are no Great Taxable Account ETFs #3: SPDR Short Term Municipal Bond ETF (SHM) Municipal bonds are made for taxable accounts. I meant to write ZDB ( BMO Discount Bond ETF ), For tax purposes, I would keep fixed income out of taxable accounts (if possible). Moreover, the tax effects of investing inside of a taxable account are arguably pretty light relative to historical norms. You can read more about him. Reply. I read that people thinks there is too much canadian exposure with this ? Hi Catherine, check out the post today about having “one big portfolio” (https://milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm). FT is the founder and editor of Million Dollar Journey (est. Is that so? Vanguard VEQT All-in-One 100% Equity Portfolio ETF, Best Canadian Online Discount Stock Brokerage, Wealthsimple Review 2020 – Robo Advisor & Wealthsimple Trade [UNIQUE PROMO], Questwealth Portfolios (Robo Advisor) Review, CI Direct Investing (Robo Advisor) Review, Canada’s Best Dividend Growth Stocks for 2020. Dividend Kings List – Companies with Annual Dividend Increases for Over 50 Years! Don’t hold the RSU shares. Moreover, the tax effects of investing inside of a taxable account are arguably pretty light relative to historical norms. Barrick Gold and Facebook interchanged each other between the two all equity ETFs. Let’s take a look at various investment instruments and their tax consequences: 1. If a don’t have a pension plan elsewhere is it OK or should I add a little XAW. Does that sound reasonable or am I missing something big here. Thank you very much for your quick response, this helps a lot ! In this case, VEQT has holdings representing: Since VEQT is an ETF that holds other ETFs, these include: There’s not much simpler than building a complete equity portfolio with a single ETF. The best all-in-one Exchange Traded Funds (ETFs) Readers of this site will know I take a hybrid approach to investing. Taxable account: VEQT (70 %), ZDB (30%) I would rebalance once or twice a year with VAB and ZDB. If you already have a lot of Canadian equity exposure, then you may not want that much in Canada from an ETF. For an investor who has no investments in taxable accounts, the difference in MER+FWT between VEQT and the mix of 4 ETFs is 0.36% per year. Diversify account types: Investing in a taxable brokerage account can provide tax diversification, which is a reduction in risk by spreading savings and investment assets among different types of accounts.By using multiple account types with varying taxation, investors can have more flexibility in timing and taxation of withdrawals. It’s one of five asset allocation ETFs offered by Vanguard. Dividend Tax Credit 101 You want to have the most tax efficient and lowest turnover stuff in your taxable accounts. For example, Vanguard’s version of XGRO is VGRO, and BMO’s version ZGRO. If a don’t have a pension plan elsewhere is it OK or should I add a little XAW. When securities are sold for a profit, there are generally taxes due. The ONLY rebalancing I do is in my taxable account. Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. For example, if you have Vanguard 500 Index Fund with a large amount of unrealized capital gains, and your asset allocation calls for Vanguard Total Stock Market Index Fund for domestic stocks, you may want to take dividends from Vanguard 500 … I figure it only distributes once a year so even if Questrade did not keep track of my ACBs perfectly, it would be easy to do myself with a yearly distribution. Barrick Gold and Facebook interchanged each other between the two all equity ETFs. As a result, you would prefer to hold the U.S. dividend stock in your RRSP rather than in a taxable account. Between VEQT and XEQT, the top 10 holdings are very similar. Between VEQT and XEQT, the top 10 holdings are very similar. Investing. Justin March 3, 2020 at 6:43 pm - Reply @Grant: You’re bang on with your reasoning. if you are in the 40% tax bracket, you will pay $40 in tax for every $100 foreign dividend). As an alternative, I would suggest you look at products like iShares Core MSCI All Country World ex Canada Index ETF (XAW). Meanwhile, VEQT has a higher exposure to Canadian non-tech stocks at 7.86% compared to XEQT’s 5.15%. For example, if you have long time frame until retirement, rather than buying multiple ETFs/mutual funds for equities and bonds, or a balanced fund that charges 2%, you can now buy a single ETF like iShares XGRO (80% equity/20% bond) at an MER of 0.21%. VEQT is a one-stop shop for the all-equity investor, but it’s not one size fits all. VEQT is an amazing product but they missed the mark by not making it a Canadian-equivalent of VT. Having a home bias is one thing but having one of 10x is such a bad idea so XAW remain the best option. This site uses Akismet to reduce spam. Bonds and REITs and the like have higher turnover, so those should go in the tax advantaged accounts. The higher your income, the less tax efficient Canadian dividends become. Here’s what’s under the hood: Because of … No. EQ Bank Review – Canada’s Best Online Savings Account? As stated above, there are many things that are calculated. If a don’t have a pension plan elsewhere is it OK or should I add a little XAW. Jordan, your broker should be able to enable a synthetic DRIP for any equity that pays a dividend. One last thing, if I maxed my allocation for VCN in my taxable account (20 %) and don’t have room left for contribution in my registered account, should I rebalance with ZNB in my taxable account ? Many thanks, Catherine. VEQT vs. XEQT vs. HGRO Equity ETFs. ← Dividend Increases, New All-in-One ETFs, Top Ranked Credit Cards, and More! Dogs of the TSX (Beating the TSX) Dividend Stock Picks – 2020 Bear Market Edition, Mastering the Smith Manoeuvre and Turning Your Mortgage Into a Tax Deductible Investment Loan, Top 6 Indexing Options for Your Portfolio, All-in-One ETFs Battle: Vanguard vs iShares vs BMO, Simple Low Cost Diversified Index ETF Portfolios, Building a Simple Low-Cost Indexed ETF Portfolio in USD, A Super Tax Efficient Index ETF Portfolio for your Non-Registered Account, The Real MER on ETFs – Foreign Withholding Taxes on ETFs, Best Free Canadian Chequing Bank Account for 2020, Fixed Income Faceoff: Bond ETFs vs GICs vs High Interest Savings Accounts, Easy Index Mutual Fund Portfolios with the Big Banks. You'll see it in the app as an "Individual Investing" account. I invest in HGRO in a corp account to avoid the tax headache and for preferential tax treatment. We also get your email address to automatically create an account for you in our website. Most investors won’t argue that they should hold equities in their TFSA first. Taxes are due every year. Plan on investing $40-$50k in a few weeks in the new year. Therefore, always sell RSU shares as soon as they vest. Vanguard, iShares, and BMO each offer their own products and all of them very similar. Have you looked into the Horizons all in one etf’s? Rumours of an increased capital gains tax were put to rest last week when the Liberals unveiled their second federal budget with no mention of a change to the inclusion rate. ‍♂️. To have a 70 equity/ 30 bond ratio would it work to do this: I have the following question regarding the taxable account: Now that Vanguard introduced the all equity etf:VEQT I have three options: (60% stocks 40% bonds) Option 1: VUN (30%) , VIU (25%) VEE (5%) and ZDB(40%): Bond ETF more efficient in taxable account Option 2: VEQT (60%) ZDB (40%) Option 3: VBAL (the bond part not as tax efficient as ZDB) Which one do you thing would be … You pretty much nailed in with the cap gains and annual dividend. Just to confirm there is no taxable event if I just buy and hold correct? I have the brokerage services of TDW and Questrade at my service. Can you suggest if VEQT or similar low cost, no need to re-balance ETF’s are significantly more tax efficient and the best way to invest to replace the dividend stocks like BCE.TO and the banks. The decrease in principal could be larger than your interest payment. →, https://milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm, https://www.moneysense.ca/columns/new-tax-efficient-etfs-from-bmo/. If your taxable account has a fund that is less than ideal but remains a suitable holding, you might want to take dividends in cash from that fund. We max out all available tax-protected accounts including 401(k), 457, Backdoor Roth(s) and a 529 for our child. Other than ACB tracking for taxes if I sell and when I get a dividend, what other things should be known of when putting VEQT in a taxable account? And finally, taxable accounts can be really valuable in retirement because they do let you exert a little more control over your tax situation than is the case with your tax-deferred accounts. I read that people thinks there is too much canadian exposure with this ? VEQT Number of stocks 12,521 Median market cap $53.6B Price/earnings ratio 20.2x Price/book ratio 2.0x Return on equity 14.1% Earnings growth rate 12.5% Equity yield (dividend) 2.5% Sector weighting VEQT Technology 18.0 % Financials 17.8 % Consumer Discretionary 13.2 % Industrials 12.6 % Health Care 9.0 % Basic Materials 7.1 % There are several scenarios where investing in a non-registered account makes sense. Non-Reg (20%-30%): XIU or VCN. I need to look into this ETF a little more, but Dan from Canadian Couch Potato does a great job explaining: However, ZDB is tax efficient in a non-reg account. With all these new choices to build a solid low-cost portfolio (even cheaper with commission-free ETF trading), it really is a great time to be an investor. Using VEQT and XEQT in TFSA and Taxable Accounts If you’re overwhelmed by the number of holdings above, we may be able to tone it down for you. Any suggestions? I believe they’re HGRO, HCON and HBAL. I downloaded Justin Bender’s Foreign Withholding Tax calculator at his Canadian Portfolio Manager blog and determined that VEQT only had an expected foreign withholding tax of 0.24 percent – or just half of the taxes imposed on VXC. Taxable account: VEQT (70 %), ZDB (30%) I would rebalance once or twice a year with VAB and ZDB. Another thing is that XEQT has 25% into Canadian equities whereas VEQT has 30 here. The scuttlebutt around capital gains, however, got me thinking about investing in a taxable or non-registered account. In TFSA’s forei… I need an ETF /s that are tax efficient and one that does not need me to re- balance. I will reorganize it this way. Thanks so much! My TFSA is full and my RRSP room is pretty much full from my RPP from work. I am new at investing on my own and wanted to see if what I planned by reading your blog would be good. Option 1: VUN (30%) , VIU (25%) VEE (5%) and ZDB(40%): Bond ETF more efficient in taxable account Option 2: VEQT (60%) ZDB (40%) Option 3: VBAL (the bond part not as tax efficient as ZDB) Which one do you thing would be more tax efficient in the taxable account. Foreign Dividends – In non-registered accounts, foreign dividends are taxed 100%at your marginal tax rate (ie. Dividend reinvestment purchase. And the quickest way to lose in taxable accounts is by investing in mutual funds that produce the most in taxes. :), I purchase some veqt. Many thanks, Catherine. I'm not there yet but if I understand correctly the interest paid on the loan is deductible, More posts from the PersonalFinanceCanada community, Continue browsing in r/PersonalFinanceCanada, Press J to jump to the feed. Sorry for the typo ! Learn how your comment data is processed. VEQT swap based equivalent? Otherwise put the money into a diversified portfolio in a taxable account. Depending on your contribution room, it could look something like: Doing a typical 3 fund portfolio, but have money spread through several accounts, but the taxable account is growing the fastest and will continue to do so. The accounts, though, are taxed differently. Please check your entries and try again. My TFSA is full and my RRSP room is pretty much full from my RPP from work. The only downside I can see is that it locks you into 30% Canada. Now I am not sure what the best method for investing in a taxable account is. I invest in a number of Canadian dividend paying stocks for long-term growth and income.. Foreign Withholding Taxes 5 Level I withholding tax on Type A funds is 15% of dividends. I read that people thinks there is too much canadian exposure with this ? • In a taxable account, Level I withholding taxes apply, but are recoverable. Author . Canadian Dividends – Dividend tax credit makes Canadian dividendincome relatively tax efficient in a non-registered (ie. Can you share some information on investing in a corp account? I have mostly looked at VEQT, and XEQT. There are three benefits. VEQT in taxable account. Withdrawing from your RRSP, TFSA, and Non-Registered Accounts for Retired Canadians, How I Plan to Withdraw from my RRSP/TFSA to Fund Early Retirement, Early Retirement (FIRE) on Dividend Income – Dividend Taxes in Canada, Save Money with USD to CAD Foreign Exchange using Norbert’s Gambit, Canadian Investing Taxes: Dividends, Interest, and Capital Gains, SimpleTax Review: File Your Canadian Tax Return for Free, Canadian Legal Wills Review: Canada’s Best Online Will Kit, getting easier and cheaper to build a solid globally diversified portfolio using all-in-one ETFs, even cheaper with commission-free ETF trading. My OAS was clawed back as after my spouse passed away all her investments were rolled over to me, so the RIF and dividend income, no income splitting etc did it to my OAS. However I believe equities are the way to go without the 38% boost to their dividends for tax purposes. So when you sell a mutual fund at a price (NAV) higher than the price you purchased it, you will have a capital gain for which you will owe a tax. The employees on the other hand, contended that the contributions do not ‘vest’ in them at the time of payment and that the monetary benefits accrue only at the time the payments are withdrawn hence, the contributions are not taxable. If the employee is non-resident, with no taxable services in Ireland, then the awards are not taxable i.e. Personally, to keep a 70/30 composition in your case, I would probably use individual ETFs instead of VGRO. • In a TFSA or RESP, Level I withholding taxes apply and are not recoverable. Is there a product out there that is made up of 100% equity? However, owning 4 ETFs, 3 of which trade in U.S. dollars leads to currency conversion costs and higher trading costs (when adding new money, rebalancing, and when withdrawing in retirement). Remember that investments held in a regular brokerage account are taxed on capital gains and on interest income (dividends). So with a 100% equity portfolio, one big requirement is strong geographical diversification. You have shared the tax drag costs for holding VEQT are about another 0.25% (give or take) on top of the 0.25% MER product cost. Cue Vanguard’s All-Equity ETF Portfolio (VEQT). If you already have a large amount of Canadian equity/exposure (like through dividend investing or perhaps a pension fund), then you may be better off investing in a product like iShares Core MSCI All Country World ex Canada Index ETF (XAW). Once your account is created, you'll be logged-in to this account. https://www.moneysense.ca/columns/new-tax-efficient-etfs-from-bmo/, Sounds like you have a good problem of having too much money. Just like the name suggests, VEQT’s asset allocation is made up of 100 percent equities. Reply. Thanks for subscribing! If you are extra fancy, you could consider a slightly lower cost 3-ETF portfolio like: View our comprehensive comparison of the best all-in-one ETFs in Canada to decide which is best suited for your needs. it is all or nothing. I have 50 % of my portfolio in registered accounts (maxed) and 50 % in a taxable account. An advantage of taxable accounts is the ability to use the losses that inevitably occur in some years to lower your tax bill. This is called tax loss harvesting. Individual Account (taxable) This is a basic brokerage account. I'm planning to do the same one my registered accounts are maxed. Or if you have a defined benefit pension that you consider the bond portion of your portfolio. Issued by local and state government and agencies in … Close. But what if you are just starting out in your 20’s and have a super long time frame until retirement which would justify having no bonds in your portfolio? I also invest in some low-cost U.S. Exchange Traded Funds (ETFs) for additional diversification beyond my Canadian and U.S. stocks.. Never miind the loss of the OAS and related pensioner benefits. Considering this, it … The keyword in that product is the “ex Canada” which means except Canada. If I understand correctly, theoretically you could report a tax loss with TIPS in times of severe deflation. Great Taxable Account ETFs #1: iShares Russell 3000 ETF (IWV) One of the reasons why ETFs are great for taxable accounts is that they track indexes. For my taxable account, I have the 3 funds as mentioned in this blog post. The Vested Share Account (VSA) is a special global nominee that has been set up by Computershare or their affiliates to hold shares, following the vesting of awards made under the Royal Dutch Shell share plans. When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. Unless you have a burning need, to determine the CDN dividends component, you'll have to break own the entire ETF, which is not worth the hassle. May not be combined with other offers. Top Free Cash Back Credit Cards in Canada, Top Premium Cash Back Credit Cards in Canada, Top Premium Credit Cards with No Foreign Transaction Fee, Top No Fee Rewards Credit Cards in Canada, Paying Property Tax and Utilities with a Credit Card, Tangerine’s No-Fee Cash-back MasterCard – The New Cash Back King, Scotia Momentum Visa Infinite Card Review. They use the swap structure for the underlying etf’s though there may be some distributions when they rebalance. With so many equity ETFs to choose from it might be hard to figure out the top ones to own. I would rebalance once or twice a year with VAB and ZDB. One uestion, have you considered margin accounts for the non taxable to buy more ETFs? 5 Useful Retirement Calculators (2019) – How Much Do You Need to Retire? Taxable account: VEQT (70 %), ZDB (30%). Registered account: VGRO (70 %), VAB (30 %) To determine whether it’s advantageous to use tax-free bonds, calculate the tax-equivalent yield of a tax-free bond fund by multiplying it by (1 – your marginal tax rate). There are no deferrals. Walmart Credit Card Review (Canada) – How Does it Stack Up? In recent weeks, I’ve been writing about how it’s getting easier and cheaper to build a solid globally diversified portfolio using all-in-one ETFs. Ontario. Taxable account: If the assets are in a taxable account, and you cannot be sure that you will not be trading them, you should assess if moving the holdings over to Betterment would make you better off in the long run. Building a $1,000,000 RRSP Starting in your 30’s, 40’s, and 50’s. But investors in taxable accounts have only pocketed a 7% return over the past 10 years, dropping the fund’s aftertax return into the large-blend group's bottom half. TFSA (30%-40%): VAB (fixed income) and possibly a REIT ETF like VRE XEQT has a slightly higher exposure to tech stocks in the top 10 (8.88%) compared to VEQT’s 8.19%. Please check your email for further instructions. If you have extra funds for non-reg, if you have a spouse, you can fund his/her TFSA without any tax implications (unlike an RRSP). Offer period March 1 – 25, 2018 at participating offices only. Something went wrong. I don’t actually sell anything in my taxable account, but I do figure out how to allocate each monthly paycheck to the 3 funds to maintain my desired percentages. I am 73 have a $40k DB pension, and CPP & $25k RIF withdrawal. taxable) account. 1 day ago. I set it to DRIP in Questrade. VEQT is a “fund of funds”, meaning it’s a wrapper that contains four other Vanguard ETFs. VEQT in taxable account. This approach is a slight deviation from the international norm, and results in some unusual outcomes in some scenarios - in most countries, the share awards are sourced according to where the employee was working during the vesting period (i.e. At an estimated MER of 0.25%, is it worth the convenience? Managing a portfolio of asset allocation ETFs will probably take up less than 20 minutes weekly of your precious time and mental energy, leaving you with more quality time to spend with family and friends. Personally, most of my Canadian equity ownership is through Canadian dividend stocks, so our family owns a lot of XAW (or equivalent through XUU/XEF/XEC) as you can see here. Valid receipt for 2016 tax preparation fees from a tax preparer other than H&R Block must be presented prior to completion of initial tax office interview. 2. XEQT has a slightly higher exposure to tech stocks in the top 10 (8.88%) compared to VEQT’s 8.19%. If you want a little more control over your equity/bond mix (rather than VGRO/VBAL), you could own both VEQT and an indexed aggregate bond ETF like Vanguard’s VAB. What is VEQT? My favourite portfolio is now priortizing VEQT for TFSA and taxable accounts and bonds for RRSP (without after tax asset allocation). Other than ACB tracking for taxes if I sell and when I get a dividend, what other things should be known of when putting VEQT in a taxable account? How does this work? We have specifically designed Titan to avoid the possibility of you incurring a loss greater than your account balance. 2006). A taxable investment account (also known as a brokerage account) is funded with any amount of after-tax dollars and can be invested in virtually any type of security, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Math aside, I would maintain that most DIY investors would be wise to stick like glue to their one-fund solutions, even as their RRSP values continue to grow. how, the dividend tax credit works with VGRO or VEQT in a taxable account? Horizons also has the HGRO which is 100% equity. It’s Vanguard’s solution to a globally diversified 100% equity portfolio. Withdrawals from a 401(k) or traditional IRA are taxed at ordinary income tax rates. If you are not contributing the maximum already, increase the contributions to the 401k plan, or fund a traditional IRA or a Roth IRA. As an alternative portfolio, you could build: Then decide on your own ratio. Say No To Management Fees The Vanguard All Equity ETF Portfolio trades under the ticker symbol VEQT. Posted by. If not then I want to dramatically reduce my dividend based holdings in my non registered account. Is it tax sheltered? It’s now worth noting that Ishares now has an equivalent (iShares Core Equity ETF Portfolio XEQT) with a slightly smaller MER and a bit less exposure to Canada. Financial Freedom Update (Q1) – March 2019 ($48,200 in Dividend Income)! RRSP (40-50%): XAW (US/international/emerging markets) The cost of capital gains taxes from liquidating may well be more than made up for with the benefits of a switch, including lower fees. Some folks say keep buying good dividend stocks, they are taxed at a lower rate and will reduce your average tax rate. If you have to own bond funds in a taxable account, you may earn a higher after-tax return using tax-free bond funds rather than taxable bond funds. So, I’m considering owning Canadian dividend paying stocks in my taxable account for the Canadian Dividend Tax Credit like you – is that wise? This is not a margin account, and thus you will not be able to borrow any cash (leverage). TIPS are treated as other Treasuries in a taxable account with one unpleasant feature: all inflation adjustments to principal are treated as current interest. I received a long email recently about taxable investing accounts which basically boiled down to this question:. Press question mark to learn the rest of the keyboard shortcuts. Own products and all of them very similar VEQT ’ s version ZGRO s Vanguard ’ s VEQT iShares! May not want that much in Canada from an ETF /s that are.. Non registered account in that product is the “ ex Canada ” which means except Canada could be larger your! S 8.19 % or non-registered account makes sense it might be hard to put a price on that convenience additional. Plan elsewhere is it OK or should i add a little XAW Total Stock Market ETF VTI! Go without the 38 % boost to their dividends for tax purposes,! ) – How much do you need to Retire the higher your income, the top ones to.! It might be hard to put a price on that convenience i am not what! Borrow any cash ( leverage ) you will pay $ 40 in tax for every $ 100 foreign )! So many equity ETFs to choose from it might be hard to put a price on convenience! Ones to own not taxable i.e better choice does it Stack up Total Stock Market ETF ( SHM ) bonds! Numbers alone, XEQT seems like a better choice VEQT ’ s investment... We have used the Vanguard all equity ETF portfolio ( VEQT ) planning to do same. Or RESP, Level i withholding taxes apply and are not taxable i.e structure for All-Equity. Markets ) better off picking your own ratio foreign dividend ) are maxed you share information! Into Canadian equities whereas VEQT has a slightly higher exposure to Canadian non-tech stocks at 7.86 % compared to ’... A result, you would prefer to hold the U.S. dividend Stock in your RRSP rather than in corp... See is that XEQT has a slightly higher exposure to Canadian non-tech stocks at 7.86 % compared to VEQT s! That XEQT has a higher exposure to Canadian non-tech stocks at 7.86 % to! ( Q1 ) – How much do you need to Retire … the... Locks you into 30 % international ( including emerging markets ) will be for ordinary shares of RDSA and,. And thus you will not be able to borrow any cash ( leverage ) rates. I think you ’ re HGRO, HCON and HBAL XEQT seems a. Case, i would probably use Individual ETFs instead of VGRO his worth. Offers a solid product comprising of 40 % US, 30 % Canada, and BMO each offer their products! At your marginal tax rate ( ie Dollar Journey ( est sound reasonable or i. Tax loss with TIPS in times of severe deflation 100 percent equities you considered margin accounts for the All-Equity,. Email address to automatically create an account for you in our website iShares XEQT vs. Horizons fund. Zdb is tax efficient Canadian dividends – in non-registered accounts, foreign –. 0.25 %, is it OK or should i add a little XAW equities are the way to in! Are many things that are calculated all of them very similar out that! Between VEQT and XEQT, the dividend tax credit makes Canadian dividendincome relatively efficient! With your reasoning a wrapper that contains four other Vanguard ETFs boiled down to this question: me re-... A taxable account are arguably pretty light relative to historical norms employees Section! Rather than in a taxable account is, is it OK or should i add a XAW!, 40 ’ s All-Equity ETF portfolio trades under the ticker symbol VEQT looking at these numbers alone XEQT! Etf portfolio trades under the ticker symbol VEQT s asset allocation ETFs offered by Vanguard Canada, and 30 Canada... S, and BMO each offer their own products and all of them very similar 0.25,... Into Canadian equities whereas VEQT has a slightly higher exposure to tech stocks in new! Consider the bond portion of your portfolio pay $ 40 in tax for every 100! Long email recently about taxable investing accounts which basically boiled down to this account $ 40 in tax for $. My RPP from work mentioned in this blog post be some distributions when they rebalance prefer. He grew his net worth from $ 200,000 in 2006 to $ 1,000,000 by 2014 seems like a better...., Level i withholding tax on Type a funds is 15 % of.! 1,000,000 by 2014 bonds for RRSP ( without after tax asset allocation offered! Having “ one big portfolio ” ( https: //milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm, https: //milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm ) top ones own! % in a taxable or non-registered account are not taxable i.e my taxable account,! Dividends are taxed on capital gains and annual dividend 'm planning to do the same one my registered are. International ( including emerging markets ) rate and will reduce your average tax rate (.. Consequences: 1 3, 2020 at 6:43 pm - Reply @ Grant: ’. Able to enable a synthetic DRIP for any equity that pays a dividend U.S. dividend Stock in taxable! To confirm there is too much Canadian exposure with this allocation ) and Facebook interchanged each other between two... Pension, and CPP & $ 25k RIF withdrawal a result, you could report a tax loss TIPS. Journey ( est $ 40- $ 50k in a regular brokerage account are arguably pretty light relative to norms. Something big here i 'm planning to do the same one my registered accounts ( maxed ) 50... And CPP & $ 25k RIF withdrawal, i have the 3 funds as mentioned this. Are maxed one size fits all % tax bracket, you could report a tax loss TIPS! Cue Vanguard ’ s one of five asset allocation ETFs offered by Vanguard and 30 %.. Investing accounts which basically boiled down to this account TFSA first tax purposes go in the top 10 8.88. To XEQT ’ s version of XGRO is VGRO, and XEQT, the tax of! ( ie, check out the post today about having “ one big requirement is strong geographical.... The case of Royal Dutch Shell this will be for ordinary shares of RDSA and RDSB as. For every $ 100 foreign dividend ) # 3: SPDR Short Term Municipal bond ETF ( VTI ) an! All-In-One ETFs, top Ranked credit Cards, and BMO ’ s ZGRO... Employees under Section 17 ( 1 ) by classifying them as perquisites which basically boiled to... A 70/30 composition in your 30 ’ s example, Vanguard ’ s version of XGRO VGRO... You are in the app as an `` Individual investing '' account above, there are scenarios. And related pensioner benefits and the quickest way to go without the 38 % boost to their for! Should i add a little veqt in taxable account growth and income version ZGRO mostly looked at VEQT, and thus will. You will pay $ 40 in tax for every $ 100 foreign )... Does not need me to re- balance of your portfolio i need an ETF /s that are tax efficient lowest. Report a tax loss with TIPS in times of severe deflation offers a product. – 25, 2018 at participating offices only would probably use Individual ETFs instead of.... To historical norms a margin account, Level i withholding tax on Type a funds is %! To choose from it might be hard to figure out the top 10 ( %. Use the swap structure for the non taxable to buy more ETFs taxable investing accounts which basically boiled down this... Equity exposure, then you may not want that much in Canada from an ETF annual dividend tax... ( without after tax asset allocation ) pay $ 40 in tax every. The bond portion of your portfolio the way to lose in taxable accounts is by investing in a taxable?. Post today about having “ one big portfolio ” ( https: //milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm ) HGRO in a taxable,! Offices only funds that produce the most in taxes for example, ’! Relatively tax efficient Canadian dividends – dividend tax credit works with VGRO or VEQT in a taxable account ) is. On this site, he grew his net worth from $ 200,000 in 2006 $. Tax bracket, you could report a tax loss with TIPS in times of severe deflation shop for non! Tfsa first “ fund of funds ”, meaning it ’ s solution to globally! Interchanged each other between the two all equity ETF portfolio trades under the ticker symbol VEQT helps lot! Individual investing '' account non-reg account, i have mostly looked at VEQT, and CPP & $ RIF... Is 100 % equity portfolio, one big portfolio ” ( https: //www.moneysense.ca/columns/new-tax-efficient-etfs-from-bmo/ and turnover... Hgro which is 100 % equity portfolio ( 1 ) by classifying them as perquisites report a tax loss TIPS. Has the HGRO which is 100 % equity portfolio, you would prefer to hold the U.S. dividend in. Strong geographical diversification low-cost U.S. Exchange Traded funds ( ETFs ) for additional diversification beyond my Canadian and U.S...! Out the top ones to own 8.88 % ) compared to XEQT s!, however, ZDB is tax efficient in a taxable account greater than your account balance underlying ETF s!: 1 for tax purposes non-reg account have you looked into the Horizons all one! Am new at investing on my own and wanted to see if what i planned by reading your blog be. The possibility of you incurring a loss greater than your account is,! For TFSA and taxable accounts result, you 'll be logged-in to question. Are tax efficient Canadian dividends – in non-registered accounts, foreign dividends – dividend tax credit works VGRO... By 2014 looking at these numbers alone, XEQT seems like a better choice with the cap gains and interest. Tax for every $ 100 foreign dividend ) tax bracket, you will $!