I opened my TFSA account and spent a while just staring at the app.
“Okay… so what do I actually buy?”
In Part 1, I confirmed my contribution room and opened the account on Wealthsimple. But once I transferred money in, I had no idea what to do next. I knew I could leave it as a savings account — but I also knew the interest rate would be nothing special.
I tapped “Add holdings” in the Wealthsimple app. I needed to type something into the search bar, but didn’t know what. I’d always been interested in Nasdaq tech companies. So I started searching — and came across QQQX.
Just an icon, no explanation. I wasn’t sure if this was the right thing. After doing some research, it clicked. This post is what I learned in that process.
What You Can Hold Inside a TFSA
First, let’s clear something up. Many people treat their TFSA like a regular bank savings account. You can do that — but it uses maybe half of what the account is actually capable of.
A TFSA is a tax-advantaged investment account. Inside it, not just interest but stock gains, ETF distributions, and capital gains are all tax-free.
| Investment Type | Examples | Tax Treatment Inside TFSA |
|---|---|---|
| High-Interest Savings (HISA) | EQ Bank HISA | Interest is tax-free |
| GIC | TD, EQ Bank GIC | Maturity interest is tax-free |
| Stocks | Apple, Shopify, etc. | Dividends and capital gains are tax-free |
| ETFs | QQQ, QQQX, XQQ, etc. | Distributions and capital gains are tax-free |
| Mutual Funds | Various funds | Returns are tax-free |
If you hold the same investment in a regular (non-registered) account, any gains trigger taxes. Inside a TFSA, all that growth stays yours. The bigger and longer the gains, the more powerful this effect becomes.
What Is QQQX?
The full name of QQQX is Global X NASDAQ-100 Index ETF. It’s listed on the Toronto Stock Exchange (TSX) and does exactly one thing: track the NASDAQ-100 Index in Canadian dollars.
The NASDAQ-100 holds 100 of the largest non-financial companies on the Nasdaq — Apple, Microsoft, Nvidia, Meta, Amazon. These are the names we call “US tech stocks.”
The simplest way to describe QQQX: it’s QQQ in Canadian dollars.
The underlying exposure is identical — you’re buying the same NASDAQ-100 basket. The difference is the currency and the exchange it trades on.
| QQQ | QQQX | |
|---|---|---|
| Underlying Index | NASDAQ-100 | NASDAQ-100 |
| Strategy | Passive index | Passive index |
| Currency | USD | CAD |
| Exchange | NASDAQ (U.S.) | TSX (Canada) |
| MER | ~0.20% | 0.25% |
| Wealthsimple FX Fee | 1.5% | None |
| Distribution | Quarterly (small) | Annual (small) |
The main reason to use QQQX instead of QQQ isn’t strategy or yield — it’s avoiding the 1.5% currency conversion fee Wealthsimple charges when you buy USD-denominated securities from a CAD account. Over multiple purchases, that adds up.
💡 Note on distributions: QQQX pays a very small annual distribution (around 0.34%). This is not an income-focused product — it’s a growth ETF. The value comes from the NASDAQ-100 appreciating over time, not from regular income payouts.
Why Holding QQQX Inside a TFSA Makes Sense
QQQX is a growth ETF — it follows the NASDAQ-100, which has historically delivered strong long-term returns. When you hold it inside a TFSA, any capital gains you earn are completely tax-free.
In a regular (non-registered) account, capital gains are taxable. In Canada, 50% of capital gains are included in your taxable income. So if QQQX goes up $2,000, roughly $1,000 of that gets added to your income and taxed at your marginal rate.
Inside a TFSA, you keep all of it.
| Regular Account (e.g., 30% marginal rate) | TFSA | |
|---|---|---|
| Investment | $10,000 | $10,000 |
| Annual gain (15%) | $1,500 | $1,500 |
| Capital gains inclusion (50%) | $750 added to income | $0 |
| Tax owed | ~$225 | $0 |
| After-tax gain | $1,275 | $1,500 |
| Difference over 10 years | Significant drag | None |
This is a simplified example — actual returns and tax rates vary. But the direction is clear: the longer you hold a growth ETF, and the more it grows, the bigger the TFSA tax advantage becomes.
How to Buy QQQX on Wealthsimple
When you first try to buy stocks or ETFs on Wealthsimple, it can feel overwhelming. I was there too.
Steps:
- Open the Wealthsimple app → Select your TFSA account
- Tap “Trade” or “+”
- Search “QQQX”
- Select QQQX (Global X NASDAQ-100 Index ETF)
- Tap “Buy” → enter amount or quantity
- Confirm and complete the order
Because QQQX trades in CAD on the TSX, there’s no currency conversion fee on Wealthsimple. If you bought QQQ (USD) from a CAD account instead, you’d pay ~1.5% per purchase. For someone investing regularly, that’s a real cost difference.
Automated vs. Self-Directed — Which Account Type?
| Automated | Self-Directed | |
|---|---|---|
| Stock selection | You choose | You choose |
| Rebalancing | Automatic | Manual |
| Management fee | 0.25%/yr (max $250/yr) | None |
| USD FX fee | 1.5% | 1.5% |
Both account types let you search and buy individual ETFs like QQQX directly. The difference is auto-rebalancing and fees.
If you’re just starting out, Automated can be a comfortable way to begin — the portfolio maintenance happens on its own. At balances under $100,000, the max fee is $250/year, which is reasonable for the convenience.
Self-Directed has no management fee and lets you trade freely. Better if you’re comfortable making your own buy/sell decisions.
TFSA vs. RRSP — Which One First?
I currently have a Manulife group RRSP through my employer. Once I leave, I plan to transfer it to Wealthsimple. That raised a natural question: how should I split monthly contributions between TFSA and RRSP?
There’s no universal answer, but there are income-based guidelines.
| Annual Income | Suggested Priority |
|---|---|
| Under $58,500 | TFSA first — RRSP deduction has less impact at lower tax rates |
| $58,500–$110,000 | Depends — consider when you’ll need the money and your expected retirement income |
| Over $110,000 | RRSP first — higher income means a larger tax refund on RRSP contributions |
The logic: RRSP gives you a deduction now at your current tax rate. The higher that rate, the bigger the refund. TFSA, on the other hand, grows completely tax-free regardless of your income level.
A common approach: fill TFSA when income is lower, shift more toward RRSP as income rises.
I’m currently planning to put around $200–300/month split between TFSA and RRSP. It’s not a lot, but consistent contributions compound. Starting is what matters most.
Transferring a Manulife Group RRSP to Wealthsimple
Moving a group RRSP out of an employer plan after leaving is more common than most people realize. To move Manulife funds to Wealthsimple without triggering taxes, you need a direct transfer.
Do not withdraw the money yourself and re-deposit it. That counts as an RRSP withdrawal and you’ll owe income tax on the full amount.
Transfer process:
- Open an RRSP account on Wealthsimple
- Submit an RRSP Transfer In request through Wealthsimple
- Wealthsimple sends the transfer request directly to Manulife
- Usually takes 2–4 weeks to complete
I’ll cover this in more detail in a separate post.
Summary
- TFSA can hold ETFs, stocks, GICs — not just savings accounts
- QQQX (Global X) is the NASDAQ-100 Index ETF in Canadian dollars — essentially QQQ in CAD
- CAD denomination means no 1.5% FX conversion fee on Wealthsimple
- Holding a growth ETF in TFSA means capital gains are completely tax-free
- TFSA vs. RRSP priority depends on your income level
- Even small monthly contributions to TFSA + RRSP add up over time — starting matters more than amount
The next post covers three common TFSA mistakes: over-contribution, re-contribution timing, and what to do with your TFSA if you leave Canada.
TFSA Series
- Part 1: TFSA Guide for Canadian Immigrants: Eligibility, 2026 Contribution Limit & CRA Check
- Part 2: Don’t Leave Your TFSA as a Piggy Bank — How to Invest in NASDAQ-100 Tax-Free with QQQX ← you are here
- Part 3: 3 Common TFSA Mistakes — Over-contribution, Re-contribution Timing, and What to Do When You Leave Canada
📌 Also read: RRSP Contribution Limit 2026: How to Check Your Limit and Maximize Your Tax Refund