1 . 15 % of 2 % is 0 . 30 % not 30 % 2 . TFSA has no cap gain tax on anything , only distribution tax charged by US Common sense is often applicable , but sometimes blinds you from the truth I don ' t deny 0 . 30 % over 3040 years is sizable chunk . But you need to look at the grand scheme of things . To save 0 . 30 % per year , you need to pay a 2 % FX spread one time which could pay itself back in around 46 years . And when its time to take out , its another 2 % FX spread , which again take another 46 years to even out . Plus many TFSA in USD charges account fees $ 15 quarter for VB or minimum balance Norbert Gambit is nice but only for large amounts . Two way 1 way for Questrade Commission eats up savings . And remember most people contribute small amount every year , not a lump sum . For people who hasn ' t maxed TFSA , assume $ 55000 room and a balanced portfolio should have around 30 % of US fund quite aggressive $ 16500 in US stocks . 0 . 3 % of that is $ 50 . Once TFSA is maxed and money overflows out of TFSA , things get bigger and more complicated and USD may become viable