Some of the funds whose days would appear to be numbered:
- all of the former Claymore, now iShares, Advantaged ETFs that Canadian Couch Potato listed and described here.
- various Horizons ETFs like the Horizons S&P/TSX 60™ Index ETF ( symbol: HXT), which I will need to remove as the Canadian equity component from my cap-weight portfolio contest at the bottom of this page, and the Horizons S&P 500® Index (C$ Hedged) ETF (HXS)
Horizons has put out a press release saying its fund HXT will NOT be affected by the tax change. The press release does not mention HXS but it works the same way as HXT as a total return swap. The budget document itself on page 353 of the pdf refers to transactions that change ordinary income into capital gains which HXT as an equity fund does not primarily do, so maybe HXT and HXS will escape. We'll have to keep monitoring to see exactly how this pans out.
... addendum 2
BlackRock says in a press release that the rule change will affect several of its funds - CAB, CVD, CHB, CHB.U, CYH, CBR, CMF and CMF.A