Protect Your Profits: Why Corporate Class ETFs Belong in Your Portfolio

Aug 15, 2025

Discover how corporate class ETFs can significantly enhance tax efficiency for high-income Canadians and business owners. Learn how these investment vehicles legally delay taxes, allowing you to keep more of your hard-earned money. The discussion sheds light on the pitfalls of conventional investment structures and offers strategies to minimize tax burdens. If you're tired of seeing your investment returns diminished by annual taxes, this insightful conversation could change your financial strategy!

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INSIGHT

Structure Enables Tax Deferral

Corporate class ETFs use a mutual fund corporation structure to defer taxable distributions.
This structure lets the fund rebalance internally to minimize annual taxable payouts until sale.

ADVICE

Avoid Dividend Drag In Taxable Accounts

Avoid dividend-heavy ETFs in taxable accounts if you sit in a high marginal tax bracket.
Choose vehicles that defer distributions so compounding isn't constantly eroded by tax.

ADVICE

Protect The Small Business Deduction

If you hold investments inside a corporation, minimize passive income to protect the Small Business Deduction.
Use corporate class ETFs to reduce taxable passive income inside retained earnings.

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Ready to take a deep dive and learn how to generate personal tax-free cash flow from your corporation? Enroll in our FREE masterclass here and book a call here

Are you unknowingly overpaying tax on your investments—just because of how they’re structured?

If you're a high-income Canadian or incorporated business owner, you already know how punishing taxes can be on your investment gains. Maybe you’ve maxed out your RRSP and TFSA leaving your remaining dollars are sitting in non-registered accounts or inside your corporation—exposed to annual taxes on dividends, interest, and capital gains.

Worse yet, every dollar of taxable income could push you into a higher bracket or chip away at your corporation’s access to the Small Business Deduction. Even with solid investment picks, your after-tax returns might be falling short because the structure itself is working against you.

In this episode, we highlight a smarter way to grow wealth without triggering taxes every year: corporate class ETFs. This isn’t about beating the market—it’s about keeping more of what you earn by choosing investment vehicles that defer taxation and minimize distributions. If you’re tired of paying tax on income you’re not even spending, and want more control over when the CRA gets paid, this episode is for you.

In this episode, you’ll learn:

What corporate class ETFs are and how they legally delay taxes—giving you more control over when you pay.
How they help incorporated business owners reduce passive income taxation and protect access to the Small Business Deduction.
Why they can outperform after-tax despite ultra-low MERs—and why they’re not the right fit if you’re using the Smith Maneuver.

If you’re investing through a corporation or holding a large non-registered portfolio, press play now to learn how corporate class ETFs could become your most tax-efficient investing edge.

Discover which phase of wealth creation you are in. Take our quick assessment and you’ll receive a custom wealth-building pathway that matches your phase and learn our CRA compliant tax optimized strategies. Take that assessment here.

Canadian Wealth Secrets Show Notes Page:

Consider reaching out to Kyle

…taking a salary with a goal of stuffing RRSPs;
…investing inside your corporation without a passive income tax minimization strategy;
…letting a large sum of liquid assets sit in low interest earning savings accounts;
…investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting cordporate passive income taxes at greater than 50%; or,
…wondering whether your cur

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Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.