Comments on: Reader Question on US Dollar Dividends in a RRSP http://www.canadiancapitalist.com/reader-question-on-us-dollar-dividends-in-a-rrsp/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jay http://www.canadiancapitalist.com/reader-question-on-us-dollar-dividends-in-a-rrsp/#comment-207388 Jay Tue, 29 Dec 2009 02:58:29 +0000 http://www.canadiancapitalist.com/2008/01/20/reader-question-on-us-dollar-dividends-in-a-rrsp#comment-207388 Emerging Market compromise: CIBC Emerging Market Index Fund with Mer of 1.37. I use this to Dollar Cost Average $100 month. I started it after putting $3000 into VWO. I plan to use the CIBC account to rebalance small amounts annually. Will move into VWO or iShares EEM. The new iShares XEM (mer .82) is Canadian ETF version of EEM. If I read the prospectus correctly it is: 1. priced in Canadian Dollars so subject to CND/USD/international currency risks, 2. will reinvest dividends. Maybe someone will run the financials to compare the benefits of DRIP vs higher mer than VWO. Looks like VWO has a much better return that would trump all minor differences. Jay Emerging Market compromise: CIBC Emerging Market Index Fund with Mer of 1.37.

I use this to Dollar Cost Average $100 month. I started it after putting $3000 into VWO. I plan to use the CIBC account to rebalance small amounts annually. Will move into VWO or iShares EEM.

The new iShares XEM (mer .82) is Canadian ETF version of EEM. If I read the prospectus correctly it is: 1. priced in Canadian Dollars so subject to CND/USD/international currency risks, 2. will reinvest dividends.

Maybe someone will run the financials to compare the benefits of DRIP vs higher mer than VWO. Looks like VWO has a much better return that would trump all minor differences.

Jay

]]> By: Paul http://www.canadiancapitalist.com/reader-question-on-us-dollar-dividends-in-a-rrsp/#comment-151843 Paul Sun, 31 Aug 2008 18:53:21 +0000 http://www.canadiancapitalist.com/2008/01/20/reader-question-on-us-dollar-dividends-in-a-rrsp#comment-151843 I have experienced the same thing with TD. In this day and age, I have to think that transactions fees in real cost terms to TD Brokerage have to be small, and that they are in fact turning the necessity to convert returns/dividends back to CAD by charging a spread as a revenue generator. Churning across currencies obviously feeds their coffers. Not nice, and in fact the one area of TD's practices that angers me. I have experienced the same thing with TD. In this day and age, I have to think that transactions fees in real cost terms to TD Brokerage have to be small, and that they are in fact turning the necessity to convert returns/dividends back to CAD by charging a spread as a revenue generator. Churning across currencies obviously feeds their coffers. Not nice, and in fact the one area of TD’s practices that angers me.

]]> By: sgdluu http://www.canadiancapitalist.com/reader-question-on-us-dollar-dividends-in-a-rrsp/#comment-108312 sgdluu Thu, 31 Jan 2008 14:41:29 +0000 http://www.canadiancapitalist.com/2008/01/20/reader-question-on-us-dollar-dividends-in-a-rrsp#comment-108312 I assume if you hold a US Dividend stock within an TD RRSP account, TD will convert the dividend into Canadian dollar for cash. If you wanted to reinvest into US, you must pay the exchange rate once again. Though this is bothersome, I can't quite convince myself to move to Questtrade. I assume if you hold a US Dividend stock within an TD RRSP account, TD will convert the dividend into Canadian dollar for cash.

If you wanted to reinvest into US, you must pay the exchange rate once again. Though this is bothersome, I can’t quite convince myself to move to Questtrade.

]]> By: pessimist http://www.canadiancapitalist.com/reader-question-on-us-dollar-dividends-in-a-rrsp/#comment-104636 pessimist Tue, 22 Jan 2008 04:18:03 +0000 http://www.canadiancapitalist.com/2008/01/20/reader-question-on-us-dollar-dividends-in-a-rrsp#comment-104636 oh. good point. :). oh. good point. :) .

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/reader-question-on-us-dollar-dividends-in-a-rrsp/#comment-104425 Canadian Capitalist Mon, 21 Jan 2008 13:08:19 +0000 http://www.canadiancapitalist.com/2008/01/20/reader-question-on-us-dollar-dividends-in-a-rrsp#comment-104425 pessimist: Are you sure you are comparing the returns correctly? Vanguard ETF returns are in US dollar terms and TD Mutual Funds' are quoted in Canadian dollars. pessimist: Are you sure you are comparing the returns correctly? Vanguard ETF returns are in US dollar terms and TD Mutual Funds’ are quoted in Canadian dollars.

]]> By: pessimist http://www.canadiancapitalist.com/reader-question-on-us-dollar-dividends-in-a-rrsp/#comment-104321 pessimist Mon, 21 Jan 2008 03:02:48 +0000 http://www.canadiancapitalist.com/2008/01/20/reader-question-on-us-dollar-dividends-in-a-rrsp#comment-104321 what settles the question for me, is that for some reason, the returns on the Vanguard ETFs are always better than those on TD. why this should be true escapes me. what settles the question for me, is that for some reason, the returns on the Vanguard ETFs are always better than those on TD. why this should be true escapes me.

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