TFSA’s and RRSP’s aside, I’m seeing that the real killer is the “drag”
Tracking error / friction from:
• Wrapper structure (VFV vs VOO)
• Cash drag
• Rebalancing lag
• Slight index replication differences
Ending up being somewhere between 0.05% - 0.15% per year.
From my understanding the foreign withholding tax is only significant in a RRSP and isn’t a big deal in an unregistered account but the real factor is again the slight difference in tracking between the 2.
I understand that there are a lot of threads on this but I couldn’t really come to the conclusion as to what the actual general consensus was, and I guess there isn’t one, but I wanted to ask directly so I would appreciate any input
Thank you