Canada based ETFs

Investing / Portfolios
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A short summary of information discussed with one user who decided to delete own account and all posts.

ETFs domiciled in Canada could be an interesting alternative to US based ETFs in some cases. For example, vanguard.ca has

FTSE Developed All Cap ex U.S. Index ETF (VDU)

FTSE Developed All Cap ex North America Index ETF (VIU)

As well as ETFs on Canadian stocks:

FTSE Canada Index ETF (VCE)

FTSE Canada All Cap Index ETF (VCN)

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And now I have a question concerning level 2 withholding tax on dividends distributed by Canadian funds or stocks. According to this summary

the standard withholding tax of 25% is reduced to 15% for individuals.

Does anyone has a first hand experience receiving dividends from CA securities? Is the withholding tax really 15%? Is it possible to reclaim these taxes as tax credit in CH (DA-1 Form?)?

Many thanks to anyone sharing experience.

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  1. Where (through which broker) does the average Swiss-domiciled Mustachian buy Canadian ETFs?
  2. Does Canada have better double taxation agreements in place (for dividends) than Ireland?
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Through Interactive ones.

Canadian ETF on Canadian stocks have lower TER and more advantageous tax treatment then IE and US ones. For developed ex US it is probably somewhat worse then Ireland, but there are no such ETFs with Irish domicile. Many forum members don’t want to invest in developed ex US via a US ETF, that’s how CA ETFs came into discussion.

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I can confirm that IB charged 15% withholding tax for VCE. I hope they will be recovered through DA-1, but let’s see.