Comments on: Ask Dave: US Dollar Investments Inside Your RRSP

By: Heather Bee

Heather Bee — Sun, 15 Mar 2009 23:55:53 +0000

I have lost over $100,000 from my RRSP portfolio. Should I transfer the remaining balance into a registered GIC in order to protect what I have left? I know that everyone is suffering but I am not wealthy and am in my mid fifties. I am currently not working.

Thank you

By: Dave

Dave — Sat, 20 Sep 2008 06:10:38 +0000

Jasmine, I think it’s great and I hope that E*Trade offers this soon. Since I don’t sell any of my investments, this doesn’t really affect me much right now. The CRA does permit one to hold foreign currency in an RRSP, its just that no company has yet supported this.

Your contribution receipts would be issues in Canadian dollars, which is the same currency you are paid in and pay your taxes in.

By: Jasmine Lee

Jasmine Lee — Sat, 20 Sep 2008 02:19:28 +0000

Hi Dave, Questrade is offering USD RRSP. This is quite interesting. what are your thoughts on this? I heard that CRA is not permitting RRSP to be opened in US currency.

One more question…If I contribute $5000 into this US dollar RRSP, what currency would my contribution receipt be issued in?…Thanks, Jasmin.

By: Lynn Suderman

Lynn Suderman — Mon, 14 Jan 2008 19:39:25 +0000

Hi Dave,

Today, Questrade launched a new service for our clients allowing USD in RSPs. For more information, please visit our site — or go directly to the press release

By: Dave

Dave — Thu, 08 Nov 2007 06:36:45 +0000

Y HAT, on the other hand, as I mentioned in my post you can decrease risk by as buying USD investments increases the negative correlation between those investments and your Canadian investments. Also, as I mentioned, doing with hedging and buying VTI, VEA or IVV, EFA over XSP, XIN, etc… means lower MERs which means greater returns. Furthermore, if retirement is a long ways away, there isn’t a whole lot to worry about even if you are planning on retiring in Canada in the end.

By: Y HAT

Y HAT — Thu, 08 Nov 2007 04:27:37 +0000

Hey Dave,

The great thing about products such as XSP, as you mentioned, is that it allows you to buy international diversification without adding currency risk. I would argue that if you are planning on retiring in Canada anyhow, you can save a lot of stress by simply buying foreign index funds that hedged to the loonie.

By: Canadian Capitalist

Canadian Capitalist — Wed, 07 Nov 2007 12:25:52 +0000

Thanks for the link Dave. I’ve been a RBC customer and you can hold U.S. stocks in your self-directed RRSP. They don’t offer wash trades. Other than TD Waterhouse, I believe Qtrade offers wash trades as well.