Foreign Withholding Tax | U.S. Equity ETFs: VUN vs. VTI
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- Опубликовано: 10 июл 2024
- In this video, Justin compares the foreign withholding tax cost between U.S.-listed and Canadian-listed U.S. equity ETFs (VTI and VUN) across various account types.
The below topics are explained in this foreign withholding tax tutorial:
00:00 Intro
00:49 Factors that impact the amount of foreign tax withheld on U.S. dividends
01:27 Foreign withholding taxes on U.S. equity ETF dividends received in RRSPs, RRIFs, LIRAs, LIFs, etc.
02:15 Foreign withholding taxes on U.S. equity ETF dividends received in TFSAs, RESPs, and RDSPs
03:04 Foreign withholding taxes on U.S. equity ETF dividends received in non-registered accounts
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That was a great follow-up video on ETF's and taxes! Thank you
Now I understand the taxes part in the investment and related accounts. Thank you for the explanation !
Great content. Thank you.
@Hari Ennekat - I'm glad you enjoyed the video - thanks for watching! :)
Great videos. Keep them coming. I find these comparison videos very interesting. I’ve watched the one on global equities over and over (under the hood). You have provided the only content I’ve found on RUclips on XWD too. I decided to purchase some due to the simplicity, even though it doesn’t have the highest return or lowest fees but it is well diversified.
@Jimmy R - Thanks for stopping by! There are a tonne of videos in the works, which are scheduled for release every 2 weeks :)
This is the best video IMO to discuss this 15% withholding tax for different scenarios - awesome! Just subscribed. (Update: YOU KNOW WHAT - I just remembered your voice - you taught me how to do Norbert's Gambit a long time ago.) Magnificent!
@kevinzhang9384 - Haha - I'm glad you found the channel again! :)
Another easy to consume content, thanks for another great video, Justin! How does this apply to Canadian-listed ETF holding foreign stocks directly like the ZSP in the non-registered account?
Hi Justin, could you please tell me what kind of investments (ETFs, mutual funds and stocks) and in what kind of accounts at discount brokerages require me to complete the W-8BEN Form. Thank you!
Fantastic video. I have a question - what about stocks like HXS or HXS.U - a corporate class total return S&P 500 ETF that doesn't distribute dividends? Does this bypass the tax drag of withholding taxes?
@Matt H - It does, but then you also pay a comparable swap fee, so the tax benefit is offset by this new fee.
Thank you for this informative post. I have been holding VFV in my RRSP thinking I was avoiding the withholding tax. According to this I'm not? Would it be better to hold VOO and how do the currency exchange fees factor in?
@S NB - Unfortunately, you wouldn't be avoiding the 15% U.S. withholding tax by holding VFV in your RRSP.
Holding VOO in your RRSP would eliminate the U.S. withholding taxes, but as you mentioned, you are now subject to currency conversion fees from your brokerage.
My next video (scheduled for release at 9:00 am on Thursday, December 1st) will discuss currency conversion fees when purchasing U.S.-listed U.S. equity ETFs in your RRSP (which should help you make a more informed decision :)
Thanks! Given that there's typically a 1.5% FX fee (one-way conversion fee) on buying US securities, is VTI still a better buy within an RRSP?
@Mogen Cheng - The 1.5% fee would still be expected to offset most or all of the foreign withholding tax benefit.
Curious what the tax implications, if any, from holding Berkshire Hathaway, which doesn’t pay a dividend, in eith TFSA or regular taxable account?
@HamiltonRb - If you don't receive any dividends from your U.S. stock or ETF, there are no foreign withholding taxes.
@@JustinBenderCPM That is food for thought. Brk b is almost like an etf without the fees and graphs well against the S& P. The only question is The boss is 91