Canadian ETFs in USD: A Low-Cost Option for U.S. Dollar Holders

The US-Canada trade war has led to an increased focus on 'buying Canadian' by investors, extending beyond groceries and consumer products.

For those with U.S. dollars in their brokerage accounts, this means looking for suitable ETFs to invest in without converting currencies repeatedly or facing the 15% U.S. withholding tax on dividends.

Fortunately, many Canadian-listed ETF providers offer U.S.-dollar units of their funds, identified by a '.U' suffix, allowing investors to deploy existing U.S. cash while keeping their ETF holdings Canadian-listed.

Three useful Canadian-listed ETFs that trade in US dollars are the BMO S&P 500 Index ETF (ZSP.U), Hamilton Enhanced U.S. Covered Call ETF (HYLD.U), and Evolve U.S. High Interest Savings Account Fund (HISU.U).