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Horizons S&P 500HXS.TOBUYJan 15, 2018Stock 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
HXS-T and HXT-T in a non-registered account. He likes this strategy based on a total return swap. You only pay capital gains tax. There is no distribution. If you believe the markets will go higher for a number of years these are great instruments. A buy and hold for many years.