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Horizons S&P 500HXS.TOTOP PICKAug 07, 2015Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
We would suggest HXS, which is an S&P 500 'total return' ETF and thus does not pay distributions. They instead accumulate via derivatives in the ETF. Thus, only capital gains taxes apply (when sold).
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Converts dividends into capital gains such that no distributions are paid out. Based off the S&P500 index so has good diversification exposure to large cap US companies. $3.2B in assets. Fees are a bit higher than a standard ETF, but taxes are deferred and shift to capital gains taxes over dividend income. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. An ETF that holds derivatives and total return swaps instead of stocks directly. Most of the portfolio is cash which mitigates counterparty risk. It has met its goals. Unlock Premium - Try 5i Free
He is quite comfortable with this. Their counterparty on this is National Bank (NA-T). This is a total return which means that all the distributions, especially in a non-registered account, are going back into the ETF adjusting and increasing the NAV which reduces its taxable position. There is no tax aspect to the US, and you are not paying any dividend tax.