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moneysense.ca, 13/06/05
TSX Market Sense
The TSX Group and MoneySense, Canada’s leading financial publication, present free informational seminars roughly twice a month. These seminars, which feature leading commentators, are taped and available as webcasts. Some recent topics that I found interesting include:
- Tax Strategies for Investors 2005
- Finding Value Stocks
- Emerging Markets: Growth in Asia
- Building a Better Portfolio with ETFs
moneysense.ca, 13/06/05
ETF is an interesting area! There are only two such funds traded in india!
Talking about ETF: From your point of view, does it make sense to buy iShares (USA) instead of iUnits (Canada) because iShares have lower MER and better selection? What is your strategy with ETF? Thanks.
I know about currency risk, but iShare for S&P 500 has 0.09% MER vs. iUnit for S&P 500 has 0.30% MER.
Alex:
iUnits S&P 500 is eligible as Canadian content inside RRSPs. They are not suitable for taxable accounts. I hold it in my RRSP account only because it counts as 100% Canadian content.
If the 2005 budget is passed, foreign content limits will be removed. In that case, it looks like Barclays would buy IVV for the XSP and hedge the currency risk. For some people, that might be worth the extra 0.15% MER.
In taxable accounts, IVV might be best. In RRSP accounts, as things are right now, XSP count as 100% Canadian content. When these rules are eliminated, the currency hedging feature may be worth the extra fee. Does that make sense?
i thought the budget was passed when the parties last voted and the speaker broke the tie.
Anon: I am really not an expert on Parliamentary procedures. Here is my understanding: Bill C-43 (Budget bill) is passed into law only when it receives royal assent. It has passed two readings in the lower house and I think the third reading is one of the votes tonight. Then it goes to the senate. I am not sure when Revenue Canada will tell us for sure that foreign property rules are eliminated. Right now, because of minority parliament, it is a bit unclear what will happen.