Tax-Efficient Changes to XEC

BlackRock Canada has made some exciting tax-efficient changes to the iShares Core MSCI Emerging Markets Equity Index ETF (XEC)! In this video, Justin will discuss how the changes will impact the amount of foreign withholding tax applicable on the fund’s dividends and answer several other questions about the changes.

The below topics are explained in this foreign withholding tax tutorial:

00:00 Summary of BlackRock’s tax-efficient changes to XEC
00:38 Before and after comparison of the foreign withholding tax cost on XEC’s dividends received in RRSPs, RRIFs, LIRAs, LIFs, etc.
01:10 Before and after comparison of the foreign withholding tax cost on XEC’s dividends received in TFSAs, FHSAs, RESPs, and RDSPs
01:35 Before and after comparison of the foreign withholding tax cost on XEC’s dividends received in non-registered accounts
01:55 Question #1: Will the change generate any negative tax consequences for XEC unitholders?
03:16 Question #2: Will XEC’s management expense ratio (MER) increase as a result of the changes?
05:10 Question #3: Will XEC’s trading expense ratio (TER) increase as a result of the changes?
06:03 Question #4: Will BlackRock Canada replace IEMG with XEC in the iShares Core ETF Portfolios?
06:59 Question #5: Should I sell Vanguard’s emerging markets equity ETF, VEE, and buy XEC?

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