Daniel Straus HBP S&P/TSX 60 Index ETF HXT-T BUY Apr 05, 2024

HXT-T vs. XIU-T. They have basically identical holding but one pays a dividend so has different tax treatment. He is indifferent. In a TFSA, there is no reason to not to use the XIU-T.

XIU has a slightly higher MER. HXT does not distribute the income but is capitalized into the portfolio holdings. It makes it a capital gain than dividend income. The redemption cost is also a factor. Would prefer HXT all things considered.

Total return ETF. Not based on an index. Done on a swap basis instead. Takes the theoretical distributions and puts them into the price of the stock, so there is no distribution.

Any sale triggers either a capital loss or gain. It depends on the election you made with CRA on your exact tax treatment. Capital gains are the most efficient tax treatment. 
 
Benefit of CRA and dividends only comes from Canadian companies. So, even if you have an ETF that pays a distribution that comes from European or American companies, that dividend is treated as income even though it comes through a Canadian ETF.

He very much likes the Global X series of corporate class ETFs. They give you broad exposure to markets but don't have those distributions, so they're a bit more tax-efficient. Now, there are some additional costs in there to create those structures. As well, it really depends on your tax rate whether they're a really big benefit to an individual. More benefit to those in higher tax brackets than in lower ones.