Hey everyone,
I’m still relatively new to investing, but I’ve managed to max out my TFSA and spent most of last year buying VEQT in my non-registered Wealthsimple account. I haven’t started contributing to my RRSP yet since I’m not sure where I’ll be retiring and I’m still learning about if it makes sense tax wise for my current income.
However, I have been learning more about how non-registered accounts are taxed, especially the higher taxes on ETFs that hold foreign equities compared to those focused solely on Canada. Because of that, I’m considering selling my VEQT and switching into something like VDY/XIC instead because I read that Canadian ETFs are way more tax efficient in non-registered accounts than global ones like VEQT.
Since I’m still learning, I’m not sure if that’s the best move. VEQT offers global exposure, while VDY is much more concentrated in Canada. Would it make sense to go from 100% VEQT to 100% VDY if my goal is long term growth? Or is some sort of split between the two better and if so what ratio? (Just to add I’m aware of the capital gains implications of selling in a non-registered etc)
If anyone can share some insight or advice to help me make a more informed decision, I’d really appreciate it.
Thanks!