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Discussion Starter #1 (Edited)
Margin income tax rate: 43%
Dividend yield of international ETF ( ZSP or ZEF): 2.0%
Fund: $50000

Taxable Account vs TFSA
Dividend 1000 vs 1000
Withhold Tax 150 vs 150
Div Credit 150 vs 0
Return before tax 1000 850
Return after tax $570 vs $850

It looks like it is much more tax efficient to hold international ETF in TFSA account. Am I missing anything?

Sorry, my mistake. TFSA of course is more tax efficient. :) I should have compared the holding of Canadian ETF and international ETF in different accounts. The reason I am doing the calculation is to justify if I should move my TFSA holding to US ETF and buy Canadian ETF in taxable account. My current TFSA are all Canadian ETF and I have some cash to invest in taxable account now.
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