TORONTO, ON–(Marketwired – March 01, 2017) – Questrade Wealth Management Inc. (“QWM”) is pleased to announce that starting with the 2016 tax year, Passive Foreign Investment Company (“PFIC”) Annual Information Statements for the Questrade Smart ETFs listed below, will be available to all U.S. taxpayers to assist them with completing their U.S. tax returns.
Currently, U.S. taxpayers who own non-U.S. investment funds must disclose all income distributions and capital gains to U.S. tax authorities which may be taxed at the highest ordinary income tax rate. Additionally, income or gains may be reallocated over the U.S person’s holding period resulting in tax and deferred interest charges for each of those previous years.
The PFIC statements contain reporting information that enable investors classified as “U.S. Persons” under U.S. tax laws to treat their investments in the funds below as Qualified Electing Funds (“QEF”). This allows non-U.S. investment funds to be treated similar to a U.S. Mutual Fund, which is often taxed much more favourably.
“A QEF election will also provide a level of information which allows investors to access capital gains tax rates as well as other information which results in the most favourable U.S. tax treatment on the income and gains generated from Questrade Smart ETFs,” says John Youn, Executive Managing Director, ETFs & Global Structured Products at Questrade Wealth Management.
The PFIC Annual Information Statements are expected to be posted to the QWM website on or about March 15, 2017.
| Questrade Smart ETF | Trading Symbol |
| Questrade Russell US Midcap Value Index ETF Hedged to CAD | QMV |
| Questrade Russell US Midcap Growth Index ETF Hedged to CAD | QMG |
| Questrade Russell 1000 Equal Weight US Technology Index ETF Hedged to CAD | QRT |
| Questrade Russell 1000 Equal Weight US Consumer Discretionary Index ETF Hedged to CAD | QRD |
| Questrade Russell 1000 Equal Weight US Health Care Index ETF Hedged to CAD | QRH |
| Questrade Russell 1000 Equal Weight US Industrials Index ETF Hedged to CAD | QRI |
| Questrade Fixed Income Core Plus ETF | QCP |
| Questrade Global Total Equity ETF | QGE |
This information is provided to help you make calculations and does not constitute tax advice. The U.S. tax laws regarding PFIC are extremely complex. As such, you should consult your own tax advisor concerning the overall tax consequences of your investment in, and ownership of, a fund that is under U.S. federal, state, local and foreign law.
Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
About Questrade Financial Group Inc.:
Questrade Financial Group Inc. (“QFG”) and its affiliated companies provide financial products and services to Canadians including securities, foreign currency, and wealth management. In 2014, Questrade’s CEO was named as EY Entrepreneur of the Year (Ontario) in the services category, and since 2011, Questrade has been ranked one of Canada’s Best Managed Companies. Questrade Financial Group is headquartered in Toronto.
About Questrade Wealth Management, Inc.:
Questrade Wealth Management Inc. is a registered Portfolio Manager, Investment Fund Manager, and Exempt Market Dealer. QWM manages and is the trustee of the Questrade Wealth Management family of exchange traded funds (ETFs), and as such, the ETFs are related or connected issuers of QWM and Questrade, Inc.
For more information
Ruth-Anne Boyd
Senior Manager, Communications
Tel: 416.227.9876 x5288
