Which of AIQ RBOT & BOTZ should be in Registered & Non Registered Accounts & why

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Asked on June 14, 2024 3:52 pm
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This is all personal preference to be honest. The distributions of these ETFs are so low that the withholding tax on the distribution would almost be a non-factor.

I'd consider these funds high risk/high reward. For some, they like to put their higher risk funds in taxable accounts so that if things go sour, they can always have the ability to claim a capital loss to offset a future or current capital gain.

On the other hand, I know some people who like to put their more speculative holdings inside of a tax-sheltered account because in the event of large gains, they'd obviously be tax-free.

If I were to own one of these, I'd opt on the side of putting them in a taxable account (my tax-sheltered accounts are all full). However, this is the overly cautious side of me speaking, as I feel valuations in this area are very high and if the industry doesn't perform as expected, we could see some drawdowns.

If you're bullish on AI over the long-term however and can withstand the volatility, tax-sheltering could lead to outsized gains moving forward due to the tax-sheltered nature of the accounts.

Hope this helps.

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Posted by Dan Kent
Answered on June 15, 2024 3:57 pm