@GeorgeGammon They also said (I think in the latest Natalie Brunelle interview) that they have the opportunity to sell BTC that were bought at ATH to generate a tax-loss
@ChizaramNelo And don’t get me wrong, just like it is said in the 1st minute of the video I referenced, dividends are an important component of total returns. So no I don’t hate dividends.
@TheCADInvestor People treat the TFSA like a savings account when it can be one of the best vehicles for asymmetric bets.
A Bitcoin ETF inside a TFSA can compound tax-free and massively expand contribution room if it appreciates.
@ChizaramNelo Over the last 5y VDY: roughly 17% annualized, XEQT 13%. VDY ended up being a more concentrated (bank + energy) bet that happened to work well recently. VDY is 10+y old, XEQT is 7yo. Theoretically, many would still expect XEQT to outperform long term
@ChizaramNelo Funny enough, products like STRC pay ~11.5% as ROC, not dividends.
ROC is actually very tax efficient in taxable accounts because taxes are deferred until sale (it lowers your cost basis instead of creating immediate taxable income).
@ChizaramNelo Also, if you had maxed your TFSA since inception, a portfolio like XEQT likely would’ve grown your contribution room more than a high-yield portfolio like VDY.
High yield often = lower long-term growth.