📈📚 As always, if you're a beginner to the Stock Market in Canada and you're looking for a step-by-step blueprint on how to get started... Find out more about our Investing Academy here - bit.ly/theinvestingacademy
ETF’s investing is for me the best way to invest. That’s why i love so much Wealthsimple ! There’s no simple way to just make your contribution and forget about it, repeat, for the next 30+
@@MoD3RnHD i just did this yesterday and waiting for the money to be transfered from my bank. I will do ETF and probably get 2 individual stocks since I'm just starting. Thanks Brandon
Thanks for this video Brandon. There is also a new all in one ETF launched by varguard recently , it is VEQT, 100% stocks. Designed for risk friendly people. I would suggest to make a video about, special sector ETFs such as IT etfs. They have witnessed a high amount of growth during the last 5-10 years.
A nice benefit of buying a Canadian based ETFs is that they count as Canadian content for tax reporting. If you have over $100,000 cad in foreign assets (cash, stocks, bonds, real estate) combined you must track your foreign holdings amount including the max value over the year, which can be complicated and time consuming for investors. Buying the VFV gives you exposure to the US stock market without having to track the value for the CRA. If these assets are held in an non registered account you will still have to pay taxes on your returns (interest, dividends and capital gains).
Starting investor here! I am in my early 20s and learning about the stock market has been interesting. Thank you for making these videos! Keep up the good work!
Brandon if I buy VFV in my TFSA are the only tax implications the 15% tax on my dividend? And will there be any paperwork associated with that or is it just taken right off automatically?
In the case of VFV where it has US holdings traded on the Canadian market, does that mean the dividends are considered Canadian? Just wondering if this gets around the 15% withholding tax you'd normally pay on US dividends if held within a TFSA. Thanks!
If you're holding an ETF traded on the TSX that holds US securities you still have to pay the withholding tax. Unfortunately, there isn't a way around this (within a TFSA). Another thing to be aware of is if you're holding a US based ETF (either directly or indirectly ie a Canadian ETF that has a US ETF in its portfolio) that contains other international securities you will incur two layers of withholding taxes. 1st layer due to receiving dividends from an international security then a second layer from the ETF itself.
I had a question about the Fees. It says for XIC, Management Fee: 0.05% and Management Expense Ration (MER): 0.06%. So would it meant it is an accumulated cost of 0.11%?
Foreign withholding tax applies to Canadian listed ETFs holding either US stocks or US ETFs. It's true for both RSP and TFSA accounts. The only way to avoid it is to purchase US listed securities in USD and hold them in RSP.
@@wizetek so how is the 15% tax paid? does the ETF pay it for you or must you pay it each year? in a tax return???? if this is the case then would you not convert your CAD to USD and buy the same ETF in USD? I assume a Canadian dollar ETF that hold US stocks is not hedged against the exchange rate so you may win or loose some profit if your buying a ETF in CAD but the stocks are all USD
@@alanmacleod2669 IRS will take their cut before dividends distribution so no need to do anything. It gets even worse if you have a Canadian listed ETF holding international equity in which case there are two levels of foreign withholding taxes! 15% is a discounted rate to fellow Canadians, others pay 30%. Again, buy US-only in USD and keep in RSP. Or buy Canadian-only in CAD and keep in RSP or TFSA.
Do you recommend and older investor facing retirement in 5 years to put money into a high yield dividend ETF fund, or would it be best to put this money into existing retirement vehicles? The idea of creating passive income really interest me however I'd be starting so late in life. I'm 58 now.
If someone wanted to get VGRO without the fee, they could go out and buy that list of ETFs in the proportion that is listed. I'm sure it fluctuates over time, but if you just rebalanced once or twice/year that should keep it close and you wouldn't be giving away that fee.
In terms of international exposure, a bank fix deposit gives about 6.5 to 7% return in India. It is pretty much because of low interest rate in US & Canadian markets.
Amit Jain I recently checked with banks in india. They are giving 6% on FD plus you have to hold the FD for 5 years. I was looking for something that gives passive income.
Excellent video. I was waiting for something like this. XIC, VFV and VGRO all are very tantalizing. I have a question about VFV though. The current annual yield of VFV is 1.67%. My bank gives me 2.00% on a TFSA-GIC. So, how does it make sense to invest in an investment vehicle that has a lower yield (if you factor in thE MER, however miniscule, even lower), than a GIC issued by a bank? Could you please advise?
So if you invest in an index fund say VFV s&p 500 and say you buy 10 shares.Later on if you want to buy another 5 from the same index do you need to buy into another separately managed fund of the same s&p or are you simply adding purchases to the same fund? Basically I’m asking if you’re hit with more management fees each time you buy from the same index?
Would I be correct that if I wanted to calculate the total return for an etf like ZAG I should add the performance numbers to the dividend yield? Or do the performance numbers already include the dividend yield numbers?
Great content as always! Q: If I buy etf with some US stocks in it (in a TFSA account) do I get charged 15% w/holding tax? I'm starting with WS Trade. Thanks!
If it's a Canadian listed ETF holding US stocks, your dividends will be subject to a foreign withholding tax regardless whether they sit in a TFSA or RSP account. To avoid this tax buy in USD a US listed ETF holding US stocks (but not including any international) and keep it in RSP.
Hey! awesome video! I hold VCN, seems to track the same as XIC? what are your thoughts on this. What difference it makes? Would be cool to see a video where you have this situations and you hesitate between them, how to choose and that :)
As a new immigrant to Canada, I love this but as I read and saw. It's better to have some education before investing plus getting a financial teacher rather than a sales person. What advise can you provide in this regard?
I would recommend having individual portfolios and possibly agree to split the difference into returns/dividends equally if you choose to on retirement/withdrawal. Purely due to psychological benefits.
Hi bro,what will i use to invest,i saw your another video about questrade and wealthsimpletrade etc,should i use either of the 2 to invest in Dividents/etf?thank bro
Hey Brandon, do you see any benefit of holding ETFs that hold the companies directly (XIC) versus ETFs that hold another ETF?? (VFV holds VOO from the NYSE).
Thanks. In iShare Core S&P, what means total return (%) within 5 years=4.65 or Incept= 6.39? Does it mean that after 5 years it has gained just 4.65 percentage or from begining just 6.39? if yes, it is awful. Or it refers to annual gain (per year), so its final gain within five years was 5*4.65= 23.25(%)?
It is the annual rate of return. For example, the iShare Core S&P (XIC) returned 4.65% per year on average over the last 5 years. The total gain over that period would be about 25.5% (compound growth).
hey brandon i was watching the etfs and saw XUU on board saying it is similar to S&P500 index can u please tell me is it the case because i use wealthtrade simple i wanted passive investment as a beginner
I will advise you invest with Manager Williams and earn huge like I do and he's currently handling my Portfolio earning 200% profit with his strategies and guideance you will achieve alot
So if I’m using wealthsimple trade, which doesn’t charge commissions or management fees, and I buy any of these ETFs, are those management fees worked into the price I pay on WST? Or am I not paying them at all?
Hey Brandon. Ive been watching your videos for a while now, appreciate the content.👍 I think I have an idea of where I’d like to start. If was to invest in an index fund such as the S&P where would be the best place to do it? Currently bank with CIBC, is your bank the proper place to invest long term for retirement?
If you're just starting out, having a diversified ETF is a reasonable way to go. Most of the S&P ETFs will be the same, so just pay attention to the fee and go from there. CIBC is as good as any other bank, if you're buying an index ETF, the returns will be the same. Best of luck in your journey.
Hi I know you can’t give me financial advice but I’m 45 years old and I have some good investments already I have $61,000 to invest just trying to figure out which would be the best to invest in. I have another 20 years of work left before I retire thanks?
📈📚 As always, if you're a beginner to the Stock Market in Canada and you're looking for a step-by-step blueprint on how to get started... Find out more about our Investing Academy here - bit.ly/theinvestingacademy
I'm one year late to the party here but great video. My favorite Canadian ETF is FIE. Tracks the Canadian financial sector. Pays a great dividend.
Just discovered your channel and am a new investor. Thank you so much for your Canadian content!!!
Thank you for these videos Brandon. As a beginner investor, I find that you explain everything well. Looking forward to what’s coming!
VGT, QQQ and IGM r among my fav etfs. I compare my portfolio to these every month
ETF’s investing is for me the best way to invest. That’s why i love so much Wealthsimple ! There’s no simple way to just make your contribution and forget about it, repeat, for the next 30+
Wealthsimple is great. But can be done for cheaper
@@MoD3RnHD I'm looking for the best cheapest platform to invest to Buy and Hold here and their. You have any recommendations?
@@madtrackk I have started using WealthSimple Trade. No commissions. I buy ETF's in my TFSA account there
@@MoD3RnHD i just did this yesterday and waiting for the money to be transfered from my bank. I will do ETF and probably get 2 individual stocks since I'm just starting. Thanks Brandon
Thanks for this video Brandon. There is also a new all in one ETF launched by varguard recently , it is VEQT, 100% stocks. Designed for risk friendly people. I would suggest to make a video about, special sector ETFs such as IT etfs. They have witnessed a high amount of growth during the last 5-10 years.
No dividend?
A nice benefit of buying a Canadian based ETFs is that they count as Canadian content for tax reporting. If you have over $100,000 cad in foreign assets (cash, stocks, bonds, real estate) combined you must track your foreign holdings amount including the max value over the year, which can be complicated and time consuming for investors. Buying the VFV gives you exposure to the US stock market without having to track the value for the CRA.
If these assets are held in an non registered account you will still have to pay taxes on your returns (interest, dividends and capital gains).
You are so good at explaining this. Very easy to follow and understand. Thank you!
Thank you so much for all your great information Brandon! I just invested in VGRO because of your excellent video. Keep up the great work.
Starting investor here! I am in my early 20s and learning about the stock market has been interesting. Thank you for making these videos! Keep up the good work!
With an ETF like VFV, which is on the TSX but holds American companies, are us Canadians still subject to the 15% withholding tax on the dividends?
no way
I believe so, if it's in your TFSA. Your RRSP is exempt.
@@ChrisReher I am not so sure... US stocks inside a canadian WRAPPER are not exempt in RRSP.
@@ChrisReher correct
What's the difference between XIC and VCN? Which one should I buy?
Hi, great video, have been waiting for this, would like to see more Cdn Etf. Thks,
Brandon if I buy VFV in my TFSA are the only tax implications the 15% tax on my dividend? And will there be any paperwork associated with that or is it just taken right off automatically?
In the case of VFV where it has US holdings traded on the Canadian market, does that mean the dividends are considered Canadian? Just wondering if this gets around the 15% withholding tax you'd normally pay on US dividends if held within a TFSA. Thanks!
I’d like to know this too
Any word on this?
If you're holding an ETF traded on the TSX that holds US securities you still have to pay the withholding tax. Unfortunately, there isn't a way around this (within a TFSA). Another thing to be aware of is if you're holding a US based ETF (either directly or indirectly ie a Canadian ETF that has a US ETF in its portfolio) that contains other international securities you will incur two layers of withholding taxes. 1st layer due to receiving dividends from an international security then a second layer from the ETF itself.
You can avoid the 15% if you hold US stocks/ETFs in an RRSP instead of a TFSA.
@@anthony2507 but only if it's a US listed ETF - not a Canadian listed ETF holding US stocks.
I had a question about the Fees. It says for XIC, Management Fee: 0.05% and Management Expense Ration (MER): 0.06%. So would it meant it is an accumulated cost of 0.11%?
If it's a canadian traded fund with US stocks, do you pay the 15% withholding tax in your TFSA?
yes you will. Unless that US stock is in your RRSP
Foreign withholding tax applies to Canadian listed ETFs holding either US stocks or US ETFs. It's true for both RSP and TFSA accounts. The only way to avoid it is to purchase US listed securities in USD and hold them in RSP.
@@wizetek so how is the 15% tax paid? does the ETF pay it for you or must you pay it each year? in a tax return???? if this is the case then would you not convert your CAD to USD and buy the same ETF in USD? I assume a Canadian dollar ETF that hold US stocks is not hedged against the exchange rate so you may win or loose some profit if your buying a ETF in CAD but the stocks are all USD
@@alanmacleod2669 IRS will take their cut before dividends distribution so no need to do anything. It gets even worse if you have a Canadian listed ETF holding international equity in which case there are two levels of foreign withholding taxes! 15% is a discounted rate to fellow Canadians, others pay 30%. Again, buy US-only in USD and keep in RSP. Or buy Canadian-only in CAD and keep in RSP or TFSA.
@@wizetek why US only in USD and keep in RSP? Why not US stock in TSFA?
Another helpful video, thanks Brandon!
This is the best stock channel! It's got me into investment
did you buy the first 3 etfs he talked about
?
@@nxte4168 i ended up buying arkk,iwf,soxx and qqq
@@nickgee7291 ima buy VFV, VGRO, VSP and XIC, what do u think of those ones?
@@nickgee7291 btw how many shares do u usually buy a month for each?
@@nxte4168 there good, but you can get more growth from other etfs with just as much safety
Do you recommend and older investor facing retirement in 5 years to put money into a high yield dividend ETF fund, or would it be best to put this money into existing retirement vehicles? The idea of creating passive income really interest me however I'd be starting so late in life. I'm 58 now.
VDY.TO in a new TFSA and contribute often to it.
Do you is still a good idea to have bond in the portfolio when there are low or negative interest rate around the world?
If it’s a Canadian ETF-even if it tracks an American index-it’s Canadian for tax purposes, correct?
If someone wanted to get VGRO without the fee, they could go out and buy that list of ETFs in the proportion that is listed. I'm sure it fluctuates over time, but if you just rebalanced once or twice/year that should keep it close and you wouldn't be giving away that fee.
Hi Brandon! Awsome content as always bro! What about doing a video on REITS? Any suggestions on an ETF for real estate ?
Yes, I’d like to see this as well!
Thank you for this video. Looking to add some ETF/Index to my mix and found it very helpful 🙏🏾
You're welcome, Steve. Glad it helped :)
In terms of international exposure, a bank fix deposit gives about 6.5 to 7% return in India. It is pretty much because of low interest rate in US & Canadian markets.
Which bank gives 6.5 to 7% interest rate?
@@navkaransingh602 type in Google, you will get the full list. This is in FD or RD. Not in savings account
Amit Jain I recently checked with banks in india. They are giving 6% on FD plus you have to hold the FD for 5 years. I was looking for something that gives passive income.
@@navkaransingh602 check Jana or AU small finance bank. Or check HDFC or LIC housing finance, they are all over 7,%
excellent information. Very very helpful. Much appreciated
new subscriber, your content is awesome, thanks!!!!
Thanks Brandon for all the good information. Can you make a video about investing in gold and silver
Can you tell me what you think about VEQT?
is etf is also same? means is there a particular time when we have to buy when its low and not to when its high
thank you!
Excellent video. I was waiting for something like this. XIC, VFV and VGRO all are very tantalizing.
I have a question about VFV though. The current annual yield of VFV is 1.67%. My bank gives me 2.00% on a TFSA-GIC. So, how does it make sense to invest in an investment vehicle that has a lower yield (if you factor in thE MER, however miniscule, even lower), than a GIC issued by a bank? Could you please advise?
You'll likely make more investing in stocks than in GICs in the long term
From 2019? Would that be considered outdated?
During the XIC example, you mentioned the MER, but above that was a management fee of 0.05%. Is that added to the MER for an over all cost of 0.11%?
No, the MER is the complete cost
So if you invest in an index fund say VFV s&p 500 and say you buy 10 shares.Later on if you want to buy another 5 from the same index do you need to buy into another separately managed fund of the same s&p or are you simply adding purchases to the same fund?
Basically I’m asking if you’re hit with more management fees each time you buy from the same index?
Would I be correct that if I wanted to calculate the total return for an etf like ZAG I should add the performance numbers to the dividend yield?
Or do the performance numbers already include the dividend yield numbers?
Do you think it is better to have 1 all in one ETF such as VGRO or have a portfolio consisting of various individual ETFs
Keep it simple and put more money into it and more often.
@@m.morininvestor9920 thanks for the advice!
Great content as always!
Q: If I buy etf with some US stocks in it (in a TFSA account) do I get charged 15% w/holding tax? I'm starting with WS Trade. Thanks!
Was hoping someone asked this question.
I would like to know as well.
If it's a Canadian listed ETF holding US stocks, your dividends will be subject to a foreign withholding tax regardless whether they sit in a TFSA or RSP account. To avoid this tax buy in USD a US listed ETF holding US stocks (but not including any international) and keep it in RSP.
Hi Brandon, is there a Canadian version of the US ETF VYM available that trades on the TSX? Thanks!
Thank you for all your videos. You're awesome!
What do you think about the VSP ETF? Would this not be a good deal also as it's hedged against currency fluctuations?
Just learning about investment. I'm a bit confused is this etf or index funds
Is the total return %, the compound interest you receive?
Do those growth rates for the funds include dividends already?
Awesome video. I need to buy USA ETF in Canada. Which broker is best for that? Please let me know.
Thanks for this great video i just purchased VGRO ETF
Love VGRO! Nice Noah no problem man
Can I buy this etf stocks on Wealthsimple... please advise
why would u buy etf on wealthsimple? questrade is free etfs
Hey! awesome video! I hold VCN, seems to track the same as XIC? what are your thoughts on this. What difference it makes? Would be cool to see a video where you have this situations and you hesitate between them, how to choose and that :)
What are your thoughts on XIC?
How do you withdrawl dividends without paying a fortune from ur tfsa
legendary video, i love it...thank you
As a new immigrant to Canada, I love this but as I read and saw. It's better to have some education before investing plus getting a financial teacher rather than a sales person.
What advise can you provide in this regard?
Just invested in zag today! Interested to see how it does
How’s it been working out man?
Should Married couples have 2 portfolios or just share 1? Is it better to have 2?
I would recommend having individual portfolios and possibly agree to split the difference into returns/dividends equally if you choose to on retirement/withdrawal. Purely due to psychological benefits.
Hi bro,what will i use to invest,i saw your another video about questrade and wealthsimpletrade etc,should i use either of the 2 to invest in Dividents/etf?thank bro
Both work. I like Questrade, you can purchase ETFs for free (no commission) 👍🏻
Thia video waa extremely helpful👍🏾
Hey Brandon, do you see any benefit of holding ETFs that hold the companies directly (XIC) versus ETFs that hold another ETF?? (VFV holds VOO from the NYSE).
Why those in CA only? Cross botder ETF investments are hot these days lol
Cool video! Thanks for sharing!
What do you think about OTC stocks?
Thanks. In iShare Core S&P, what means total return (%) within 5 years=4.65 or Incept= 6.39? Does it mean that after 5 years it has gained just 4.65 percentage or from begining just 6.39? if yes, it is awful. Or it refers to annual gain (per year), so its final gain within five years was 5*4.65= 23.25(%)?
It is the annual rate of return. For example, the iShare Core S&P (XIC) returned 4.65% per year on average over the last 5 years. The total gain over that period would be about 25.5% (compound growth).
Great video! VGRO has picked up a lot of popularity recently - but that MER is too high IMO :(
hey brandon i was watching the etfs and saw XUU on board saying it is similar to S&P500 index can u please tell me is it the case because i use wealthtrade simple i wanted passive investment as a beginner
I will advise you invest with Manager Williams and earn huge like I do and he's currently handling my Portfolio earning 200% profit with his strategies and guideance you will achieve alot
Can I buy VFV in a TFSA account?
Yes you can. - Marc
...great info...
So if I’m using wealthsimple trade, which doesn’t charge commissions or management fees, and I buy any of these ETFs, are those management fees worked into the price I pay on WST? Or am I not paying them at all?
Management fees are worked into the price of the ETFs. By using Wealthsimple you save on the commission that a broker like TD charges.
nikhilsrl right on, thanks!
Can someone make time stamps?
Very good analysis.
dividend US etf is needed
THANK YOUUU ❤️🤩
Great content
Thanks Ravind.
Hey Brandon. Ive been watching your videos for a while now, appreciate the content.👍 I think I have an idea of where I’d like to start. If was to invest in an index fund such as the S&P where would be the best place to do it? Currently bank with CIBC, is your bank the proper place to invest long term for retirement?
If you're just starting out, having a diversified ETF is a reasonable way to go. Most of the S&P ETFs will be the same, so just pay attention to the fee and go from there. CIBC is as good as any other bank, if you're buying an index ETF, the returns will be the same. Best of luck in your journey.
Hey Brandon. I'm assuming purchasing ETFs from TD is also good?
Awesome thanks!!!!!!😊
whats the cap of XIC? maybe ill check it out myself.
Thank you
All of these provide us dividends periodically?
They are called distributions and yes!
Thank you !!
Beware of the "Return of Capital".
Hey Brandon, can you do a video on actually how to invest?
i think he already covered this on his previous videos
@@ARCHraff thank you
ETF of an ETF. Oh boy sounds like the next bubble
Awesome 👏
I see!!!
👍 VGRO 👍
Are these still relevant in 2021 :) ?
Yes!
@12:15 you said this trades at 69dollars USD lol its canadian just saying
Hi I know you can’t give me financial advice but I’m 45 years old and I have some good investments already I have $61,000 to invest just trying to figure out which would be the best to invest in. I have another 20 years of work left before I retire thanks?
If you bought these Vanguard ETFs on say WealthSimple Trade or Questrade would you still have to pay the MERs and management fees?