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Hi,

I am about to do my annual rebalancing. I will also take the opportunity to sell my TD e-funds and purchase the equivalent ETFs. Does anybody know whether the superficial losses rule would apply in this case?
Thanks.
 

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It is hard to say. I would think that a mutual fund and ETF that track the same index are identical securities. But are they really? The ETF likely has a lower MER and hence a lower theoretical tracking error.

I haven't seen this question definitively answered anywhere, so to be safe, I would switch from a mutual fund to a slightly different index. For instance, if you are selling the TD Canadian Index Fund (e-Series), you might consider putting the proceeds in XIU, instead of XIC.
 

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Or you can sell, wait 30 days, and purchase the equivalent ETF. This depends if you're willing to risk that the market will have a good run during the month you are out of it...
 
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