You are correct. These are swap-based ETFs, and they have some of their own unique risks including regulatory risk and counterparty risk. There are enough swap-based ETFs available in Canada now to build a geographically diversified portfolio tracking the S&P 500, S&P/TSX 60, EURO STOXX 50, and Canadian bonds. However, these are all large cap indexes which miss out on a large portion of the market. Using these products is an option if tax is the only consideration, but not something that I would recommend from an investment perspective.