Are there any advantages / disadvantages between holding either XAW or VXC in a non-registered / taxable account? For example, is one more tax efficient than the other because of higher foreign withholding taxes due to the way they are structured (ie. underlying holdings)?
Posted Dec 27, 2023, 4:57 AM UTC
Doesn't matter: https://www.youtube.com/watch?v=hzj-CZ38NKM
The first step we would have to go through is pulling up the webpage for each ETF to see what its facts are. You should start there, or post the links for us,
Neither. Just own XEQT or XGRO.
Thank you. I did Google this before posting but most articles on the topic are from ~2020 (or earlier) and I know there have been changes to the structure (ie. underlying holdings) of some of the Blackrock and Vanguard ETFs since then, but couldn't find anything specific to XAW or VXC.
For example, 10 months ago Blackrock's XEC changed to holding underlying stocks directly, which decreased withholding taxes (Source). At the time, Vanguard's equivalent VEE hadn't made this change (I'm not sure if this has changed since).
Might be worth asking in r/cantax and/or more investing oriented subs.
Both are great funds and there's not a huge difference:
I'd choose XAW for it's more efficient emerging markets holdings. I hope Vanguard makes the same change with VEE eventually.