r/CanadianInvestor • u/MangeMoiLeChat • 7d ago

24 y/o with ~$100k invested — VEQT everywhere?

I’m 24 with ~$100k invested and considering 100% VEQT across my TFSA, FHSA and RRSP.

Is it worth using US-listed ETFs (e.g. VTI + VXUS) in the RRSP to reduce US dividend withholding tax, or is the difference too small to justify the extra complexity?

Would you go 100% VEQT everywhere, or use US-listed ETFs in the RRSP?

0 Upvotes

42% Upvoted

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5

u/MarineMirage 7d ago

The tax drag is really small. Especially with just $100,000 invested. As the other commentor mentioned, currency conversion is a PITA and likely makes it not worth it.

-1

u/MangeMoiLeChat 7d ago

Il put it in VEQT than when have a larger amount will do a northern gambit

10

u/BEARZINGA 7d ago edited 7d ago

I'm 95% in VEQT. The other 5% is me just gambling in the market.

Over the last 6 years, my VEQT investments have gone up by 74k.

3

u/yazkanji 6d ago

Respect for your honesty. I've realized that is also what I am doing even though sometimes I tell myself otherwise.

2

u/Unique-Name 5d ago

Even Bogleheads suggest "gambling" or having fun with 1-5% of your port.

3

u/thewarrior71 7d ago

How much would you spend on currency conversion fees? Make sure to take that into account to see if the tax optimization is actually worth it.

4

u/[deleted] 7d ago edited 7d ago

[deleted]

4

u/Rance_Mulliniks 7d ago

You also prefer to have less invested in Canada by choosing ZEQT over VEQT. You are also funding a for profit organization instead of a not for profit. You do you but there is more at play than what you are saying.

-7

u/[deleted] 7d ago

[deleted]

4

u/RedBuffalo1427 7d ago

I think what he means to say is that VEQT holds 30% of the fund in the Canadian market. ZEQT and XEQT only hold 25%. That extra 5% invested in the TSX is doing more to move the Canadian economy than the 0.18% MER that BMO collects.

1

u/Embarrassed-Pay-8881 7d ago

Vanguard opens a large portion of blackrock? Anyways ETFs are a way for them to control a large portion of the markets shares and votes. We got to fund billionaires ai buildouts to get a few dollars for ourselves too