I am a Canadian resident in the US who is not a resident/tax resident of Canada. I find myself sitting on some excess CAD. I would like to invest it into a CAD-denominated asset instead of converting to USD because (1) the current exchange rates are unfavorable and (2) I want it to function as a small currency hedge given that my primary income is in USD.

I am looking for possible options along the lines of an CAD-denominated etf that I can purchase at a US brokerage but I might be looking in the wrong place. Any suggestions?Ideally this would be something that is tax efficient, does not require conversion, and with manageable paperwork overhead.

  • There are US-based brokers that let you fund your account in non-USD currencies (CAD, EUR...) and offer international trading. If you already have a broker, I'd start there.
    – 0xFEE1DEAD
    Apr 19, 2023 at 12:55
  • Thank you. Do you have examples of brokers that have those options? I use TDA and they don’t appear to.
    – dshkol
    Apr 19, 2023 at 15:11
  • Interactive Brokers and Fidelity come to mind but YMMV
    – 0xFEE1DEAD
    Apr 19, 2023 at 16:38
  • Note it will be the same as exchanging your CAD to USD and then buying something in Canada with your USD (perhaps minus some exchange fees). If you are really convinced the CAD exchange rate is too low, you should not only put your spare CAD in CAD bonds - you should also take all your spare USD, and buy CAD and CAD bonds. Apr 21, 2023 at 19:00
  • I say bonds instead of ETFs, because many ETFs are largely unaffected by currency fluctuations. Buying a Canadian ETF with CAD is pretty much the same as buying it with USD. Buying a US ETF with CAD is pretty much the same as buying it with USD. Apr 21, 2023 at 19:01