HXQ vs TDB 908

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Feb 24th, 2020 8:59 am

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Feb 14th, 2020 6:13 am

BardoonD52881 [OP]: Member; Jul 22, 2018; 211 posts; 169 upvotes

Feb 14th, 2020 6:13 am

HXQ vs TDB 908

I have some money in tdb 908 41k and 7k on tdb 902 in my tfsa

I was thinking of changing it into qqq once I reached the tfsa limit which I have. But once I heard of hxq it seems better. I wouldnt have to convert into US and back.

qqq has .2 mer and tdb908 has .5 and hxq has .25 plus sales tax?

what is the hxq sales tax? is there some other hidden fees associated with horizon funds(swap fees)? are they reliable for long term holds(govt causing changes)? Some info on this would be nice from people that hold it or have some knowledge about it.

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Feb 14th, 2020 10:35 am

gparadis01: Jr. Member; Jun 17, 2018; 122 posts; 97 upvotes; Hamilton, Bermuda

Feb 14th, 2020 10:35 am

HXQ has a total product cost of about 0.66% per year.
Management fee is 0.25%, and adding the sales tax (approx 10%) gives the ETF's MER of 0.28%.
However, a trading fee (swap fee) also applies, and is 0,38% for this product.
Just as you mentioned, there is a certain risk to holding HXQ. Its main advantage is the absence of distributions, which may not last forever. You would also face the risk of a forced disposition (and triggering a capital gain) if the tax laws change. However, the product is convenient since you don't have to convert FX and track distributions/ACB for your investment.

There's no clear cut answer. QQQ should yield a better return on the long term, but will be more complicated for FX conversions and tax reporting in a non-registered account.

Source for HXQ fees: https://www.horizonsetfs.com/horizons/m ... IR2019.pdf

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Feb 14th, 2020 10:25 pm

BardoonD52881 [OP]: Member; Jul 22, 2018; 211 posts; 169 upvotes

Feb 14th, 2020 10:25 pm

gparadis01 wrote: ↑ HXQ has a total product cost of about 0.66% per year.
Management fee is 0.25%, and adding the sales tax (approx 10%) gives the ETF's MER of 0.28%.
However, a trading fee (swap fee) also applies, and is 0,38% for this product.
Just as you mentioned, there is a certain risk to holding HXQ. Its main advantage is the absence of distributions, which may not last forever. You would also face the risk of a forced disposition (and triggering a capital gain) if the tax laws change. However, the product is convenient since you don't have to convert FX and track distributions/ACB for your investment.

I think they might have gotten rid of the swap fee recently

https://www.horizonsetfs.com/etf/hxq#

Feb 24th, 2020 8:59 am

holy_pyro: Newbie; Jun 25, 2009; 36 posts; 37 upvotes; Burlington

Feb 24th, 2020 8:59 am

QQQ is heavily weighted in IT (over 60%). Anyone remember the dot com bubble?

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