[yyzvoyageur]

I've been reading a lot lately about portfolio allocation and how we can allocate different bits of our portfolio to different accounts (RRSP, TFSA, non-registered) to take advantage of favourable tax treatment.

My question is this: If one holds only ETFs that are traded on the TSX, does it matter how these ETFs are allocated? For example, I hold XSP (S&P 500 currency-hedged ETF), CWO (emerging markets), and XIN (international). Would it make any difference for tax purposes where I hold those ETFs or should I treat them the same as I would XIC or CRQ?

Thanks for the input.

 

[yyzvoyageur]

Absolutely yes. XIN and XSP hold foreign ETFs. Dividend income from these ETFs is foreign dividend income and isn't eligible for the dividend tax credit.

Thanks. That's what I thought, but wasn't 100%. Yours is a great blog, by the way.