# If I was an index investor **URL:** https://forum.mustachianpost.com/t/if-i-was-an-index-investor/4705 **Category:** Investing / Others **Created:** [November 12, 2020, 7:28am UTC](https://forum.mustachianpost.com/t/if-i-was-an-index-investor/4705 "2020-11-12T07:28:06Z") **Posts on this page:** 1 **Showing post:** 183
### Author: ![Helix](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/h/e19adc/32.png) [@Helix](https://forum.mustachianpost.com/u/Helix) #### Post date: [February 26, 2024, 7:29pm UTC](https://forum.mustachianpost.com/t/if-i-was-an-index-investor/4705/183 "2024-02-26T19:29:50Z")
I found this ETF by chance: [ZGQ (BMO MSCI All Country World High Quality Index ETF)](https://www.bmogam.com/ca-en/products/exchange-traded-fund/bmo-msci-all-country-world-high-quality-index-etf-zgq) is domiciled in Canada, has a TER of 0.5%, and replicates “MSCI All Country World High Quality Index”, which I can’t find online. But I can find [MSCI ACWI Quality](https://www.msci.com/documents/10199/9386d956-d8a5-4cf1-9eaa-fc597c10ad81). For completeness’ sake I also added [MSCI ACWI](https://www.msci.com/documents/10199/8d97d244-4685-4200-a24c-3e2942e3adeb) ### ZGQ: Allocation from 2024-01-31 factsheet ![grafik](https://forum.mustachianpost.com/uploads/default/original/2X/b/b1b9a92835d9596b2eb0aea979dcb0041bfa5642.png) ### MSCI ACWI Quality: Allocation from 2024-01-31 factsheet ![grafik](https://forum.mustachianpost.com/uploads/default/original/2X/3/3d64cf1a29e4f37c934d0a09cc3fed2db49114e3.png) ### MSCI ACWI: Allocation from 2024-01-31 factsheet ![grafik](https://forum.mustachianpost.com/uploads/default/original/2X/d/df93abdf714b6931b5e6cc3556b932d7a71e6262.png) Sectors for quality seem to be similar enough, but the USA is weighted even stronger. We can also see that EM is included (ACWI = World + EM). The Sectors differ much from the standard MSCI ACWI. ## What about the return? I had to convert [ZGQ adjusted close data from Yahoo Finance](https://finance.yahoo.com/quote/ZGQ.TO/history) from CAD to USD. The exchange rate was taken from [xe.com](https://www.xe.com/currencytables/?from=CAD&date=2023-12-31#table-section). Yearly returns are calculated between the last trading days of the year. I also add [MSCI World Quality](https://www.msci.com/documents/10199/344aa133-d8fa-4a15-b091-20a8fd024b65) to the comparison. All index data is taken from those factsheets. It is GTR (Gross Total Return) in USD. ZGQ is inclusive its dividends before L2TW taxes on them. | Year | ZGQ | MSCI ACWI Quality | MSCI ACWI | MSCI World Quality | MSCI World | | --- | --- | --- | --- | --- | --- | | | ETF | GTR | GTR | GTR | GTR | | | | | | | | | 2023 | 32.33% | 33.03% | 22.81% | 32.97% | 24.42% | | 2022 | -24.03% | -23.42% | -17.96% | -21.90% | -17.73% | | 2021 | 22.42% | 22.50% | 19.04% | 26.10% | 22.35% | | 2020 | 24.06% | 25.38% | 16.82% | 22.73% | 16.50% | | 2019 | 35.75% | 35.96% | 27.30% | 36.70% | 28.40% | | 2018 | -7.92% | -6.95% | -8.93% | -5.06% | -8.20% | | 2017 | 27.86% | 29.02% | 24.52% | 26.64% | 23.07% | | 2016 | 5.05% | 6.08% | 8.48% | 5.12% | 8.15% | | 2015 | 0.29% | 1.98% | -1.84% | 4.25% | -0.32% | | | | | | | | | AVERAGE | 12.87% | 13.73% | 10.03% | 14.17% | 10.74% | | GEOMEAN | 11.06% | 11.95% | 8.90% | 12.54% | 9.60% | Looks alright. We got 3% additional performance for the indexes. The ETF still managed to get more than 2%. The index hugging [MSCI World Sector Neutral Quality](https://www.msci.com/documents/10199/f22aa42d-3d6b-478e-a4e4-26d56428ede4) only got about 1%. I would have done a more direct comparison, but that data was NTR. ## Additional thoughts Canada is not ideal from a tax perspective. The USA will take their unrecoverable 15% L1TW on the majority of all dividends. Which would have been avoidable by having a US domicile. Then the Canadian government takes another 15% on everything. If you can convince them that you are entitled to the reduced 15% withholding taxes, else you pay 25%. Possibly a broker can handle that for you. [IBKR seems to fill an NR4](https://www.interactivebrokers.com/en/support/reports-and-dates.php). Which seems to work like the US W-8BEN/1042-S. To get a foreign tax credit on L2TW in Switzerland should be easy (regardless of IBKR’s omnibus account). **tl;dr:** This product is somewhat good. --- _[View the full topic](https://forum.mustachianpost.com/t/if-i-was-an-index-investor/4705)._