Thoughts on swap-based ETFs in taxable acct
HBB - CAD Bond
HXT - S&P/TSX 60 (CAD equity)
HXS - S&P 500 (US equity)
HXX - Euro STOXX 50
The only thing missing is a Far East and Asia swap-based ETF, so I'd look at another company, for that (any suggestions?). I'd also want to put something into a REIT or other Real Estate ETF (any suggestions?)
I'm looking at swap-based products to help simplify calculation of my Adjusted Cost Base (since there are few if any distributions) and tax would be deferred until units are sold, and all growth is considered capital gains as opposed to income (again because there are few if any distributions). So to me, even though the fees are slightly higher than their competition the savings in terms of saved taxes should outweigh the fees.
I was wondering what RFDers thoughts were on swap-based products. And specifically, what are your thoughts on the portfolio shown above?
-- Jean Chretien