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Author Topic: Coreshares Proptrax Question  (Read 2918 times)

Samurai

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Coreshares Proptrax Question
« on: December 31, 2015, 09:27:15 am »
Hi Guys, I have started to give some serious thought of moving into EFT's especially both Coreshares's Divtrax and Proptrax.
One quick question, do you have to pay tax on an EFT like Proptrax as they consist mainly REIT's.

On normal dividends received the tax is already paid to SARS but on REIT as I understand it one has to include the dividends received from REIT's on one's tax return, does the same apply to EFT's where the majority shares are REIT's?

Also would it make better sense then to keep REIT's in invest in a TFSA account?
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Fawkes85

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Re: Coreshares Proptrax Question
« Reply #1 on: December 31, 2015, 10:01:08 am »
I do not know much about the taxes aspect of it but thought I would give my 2c about it anyway just in case. If you are chasing dividends then an ETF (Exchange Traded Fund and thus not EFT ;) such as PTXTEN might not be worth it. The dividends are so diluted by the time it gets to you that you barely get anything. Which, for me personally, defeats the whole purpose of being invested in a REIT in the first place. Their pull is the income they provide but I guess they still have a growth potential to them and if it is the growth you are chasing than PTXTEN is not a bad ETF to be invested in.

On a side not, I am sure you know this but just in case you do no, only ETFs are allowed in a TFSA so if you plan to have REITS in a TFSA your only way to do it is through ETFs such us PTXTEN and PTXSPY.
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