6 reasons Canadians should use Canadian-listed ETFs

Recent research reveals a troubling knowledge gap among ETF investors. According to a national poll commissioned by the Canadian ETF Association (CETFA) and conducted by the global research partner Sago, 65% of Canadians are unaware that Canadian and U.S.-listed ETFs are subject to different tax treatments. Even among current ETF holders, 36% don’t know about these tax differences, and 45% of investors who own U.S.-listed ETFs remain similarly uninformed.

Canadians may not fully understand the implications of investing in different markets, potentially missing out on important benefits and facing unexpected costs. There are 6 key reasons Canadians should use Canadian-listed ETFs.

Canadian-listed ETFs issue Canadian tax slips, simplifying your tax filing process. This helps you avoid complex U.S. tax forms and potential confusion.

Canadian ETFs are designed for TFSAs, RESPs and non-registered accounts, with clear tax treatment and fewer surprises. In contrast, U.S.-listed ETFs can result in unexpected withholding taxes and complicated reporting requirements. 

Canadian-listed ETFs are governed by Canadian securities regulators, offering familiar protections and oversight you can trust.

Trade during Canadian market hours, settle in CAD, and avoid cross-border settlement issues.

Many Canadian-listed ETFs that invest outside of Canada offer CAD-hedged versions, giving you greater control over currency risk.

With a comprehensive platform covering all asset classes, Canadian investors can access virtually any desired exposure with the advantage of Canadian-listed ETFs.

To learn more about the benefits of Canadian-listed ETFs and their potential role in your investment portfolio, contact your CIBC representative or visit the CIBC Global Asset Management ETFs page. For more insights, follow us on LinkedIn Opens a new window..