Investing

Switching to to us listed ETF in RRSP

  • Last Updated:
  • Apr 4th, 2019 9:07 am
[OP]
Sr. Member
Oct 21, 2016
900 posts
658 upvotes

Switching to to us listed ETF in RRSP

At what dollar value in in your RRSP does it become worthwhile to use NG to switch over to US listed ETFS for your US equity ie VTI to reduce fees and eliminate dividend witholding tax? . Is there a threshold 100k , 200k or 300k that some of you switched over ?
4 replies
Member
Dec 26, 2013
469 posts
159 upvotes
Ottawa
Depends on what you consider a lot of money. Take a CAD ETF like XAW, on a $100k RRSP you would be paying a $220 MER, plus $168 in FW taxes on the 55.92 % US equity that makes up XAW, for a total of $388/year. With VTI and a MER of .04% you pay $40 year for a difference of $348 or ~ 34 basis points.
Last edited by wilyam on Apr 3rd, 2019 9:45 pm, edited 1 time in total.
[OP]
Sr. Member
Oct 21, 2016
900 posts
658 upvotes
Thanks for the math so on 300k it would be close to 1000 dollars , not insignificant. Appreciate it .
Member
Dec 26, 2013
469 posts
159 upvotes
Ottawa
A better example for the same exposure would have been VT which is a global ETF like XAW, in this case you’d be paying a $90 MER instead of $40 for a difference of $298.

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