ETFs

Leveraged ETFs frequently resemble index funds, but in addition to investor equity, the fund’s capital provides a higher level of investing exposure. For every $1 of investor cash, a leveraged ETF will typically maintain a $2 or $3 exposure to the index. The fund’s purpose is for the value of the investments made with borrowed […]

An accumulating ETF is one in which any dividends paid out by the fund’s underlying holdings are automatically reinvested into the fund by the fund manager at no additional cost. As a result, the ETF’s value grows. Is it wiser to accumulate ETFs? The ideal option is to invest in accumulating ETFs, which automatically reinvest

An actively managed ETF is a type of exchange-traded fund in which the underlying portfolio allocation is decided by a manager or team, rather than following a passive investment strategy. Although an actively managed ETF will have a benchmark index, managers can adjust sector allocations, make market-time trades, and diverge from the index as they

Capital gains are taxed at a rate of 50% in Canada, and must be included in the investor’s taxable income. The holder will be taxed on the reinvested distributions in the year they are received. Furthermore, a reinvested distribution will raise the holder’s total ACB of their ETF units retained. How does a bond ETF’s

The Sit Rising Rate ETF is an exception (RISE). This ETF is officially a commodities pool because it uses futures contracts and options on Treasurys. That is to say: The profits of RISE are taxed differently. The long-term capital gains rate of 20% will be applied to 60% of any gains. No of how long

ETFs (exchange-traded funds) pay out the entire dividend from the equities owned within the fund. Most ETFs do this by keeping all of the dividends received by underlying equities during the quarter and then paying them out pro-rata to shareholders. They are usually compensated in cash or in the form of extra ETF shares. Do

Long-term capital gains rates apply to ETFs held for more than a year, which can be as high as 20%. Individuals having a high level of investment income may be subject to an extra 3.8 percent Net Investment Income Tax (NIIT). Do you have to pay capital gains tax on your ETF gains? Because of

Mutual funds and exchange-traded funds (ETFs) are comparable, but ETFs have several advantages that mutual funds don’t. The process of creating an ETF starts when a potential ETF manager (also known as a sponsor) files a proposal with the Securities and Exchange Commission (SEC). The sponsor then enters into a contract with an authorized participant,

The tax consequences of ETF dividends are determined by whether they are qualified or unqualified dividends. If the dividends are unqualified, they will be taxed at your regular income rate. If they’re qualified dividends, they’ll be taxed at a rate ranging from 0% to 20%. Are payouts from ETFs taxable? ETF dividends are taxed based

ETFs (exchange-traded funds) pay out the entire dividend from the equities owned within the fund. Most ETFs do this by keeping all of the dividends received by underlying equities during the quarter and then paying them out pro-rata to shareholders. They are usually compensated in cash or in the form of extra ETF shares. How