XEF dividend tax treatment in non-registered account

Dividends are treated no different whether it is distributed from an ETF or a stock. You book the income in the year in which the dividends are received. Foreign dividends are treated as regular income.

Thanks. So no preferential tax treatment since not from eligible Canadian business. Got it.

You can check the tax characteristics of past distributions on the ETF’s website. https://www.blackrock.com/ca/investors/ ... -index-etf
Go to distributions, select chart and calendar year to see the breakdown.

You generally want to hold foreign equities in registered accounts if possible and should favour domestic equities in non registered due to the tax treatment of dividends.

You will receive a T3 at the end of the year for any distributions received, if in a taxable account. The T3 will breakdown how the distribution is divided up for different tax components, and any foreign tax credit.