Comments on: How to invest in index funds? https://www.moneywehave.com/how-to-invest-in-index-funds/ Personal Finance and Budget Travel for Canadians Sun, 29 Oct 2023 01:28:45 +0000 hourly 1 https://wordpress.org/?v=7.0 By: Loonies and Sense https://www.moneywehave.com/how-to-invest-in-index-funds/#comment-223032 Sun, 29 Oct 2023 01:28:45 +0000 https://www.moneywehave.com/?p=768899#comment-223032 Just a quick note that the NASDAQ Composite isn’t just tech — there’s healthcare, biotech, and even oil companies in there. But, yes, it’s *predominantly* tech…

]]> By: Barry Choi https://www.moneywehave.com/how-to-invest-in-index-funds/#comment-213396 Thu, 29 Apr 2021 18:13:15 +0000 https://www.moneywehave.com/?p=768899#comment-213396 In reply to Jack Top.

Jack,

I haven’t done much research on Horizon ETFs. That said, as far as tax efficiency is concerned, I personally try not to get obsessed with what assets I have in what accounts to minimize taxes. I just use what makes the most sense for me. In my TFSA I have VEQT, my RRSP is VGRO.

]]> By: Jack Top https://www.moneywehave.com/how-to-invest-in-index-funds/#comment-213394 Thu, 29 Apr 2021 16:11:09 +0000 https://www.moneywehave.com/?p=768899#comment-213394 Do you have any opinions on the new Horizon tax-efficient ETFs? For example, “HBAL” is a global index ETF (currently 9% bonds). The benefit of these ETFs is that they are not expected to have any distributions, which makes them tax efficient, especially if there is a concern with OAS claw-back. The following explains their structure:
“Horizons Total Return Index ETFs (“Horizons TRI ETFs”) are generally index-tracking ETFs that use an innovative investment structure known as a Total Return Swap to deliver index returns in a low-cost and tax-efficient manner. Unlike a physical replication ETF that typically purchases the securities found in the relevant index in the same proportions as the index, most Horizons TRI ETFs use a synthetic structure that never buys the securities of an index directly. Instead, the ETF receives the total return of the index through entering into a Total Return Swap agreement with one or more counterparties, typically large financial institutions, which will provide the ETF with the total return of the index in exchange for the interest earned on the cash held by the ETF. Any distributions which are paid by the index constituents are reflected automatically in the net asset value (NAV) of the ETF. As a result, the Horizons TRI ETF receives the total return of the index (before fees), which is reflected in the ETF’s share price, and investors are not expected to receive any taxable distributions.”

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