facebookAny reason why you would invest in a US-domiciled ETF over the Ireland-domiciled one? - Seedly

Anonymous

25 Mar 2021

General Investing

Any reason why you would invest in a US-domiciled ETF over the Ireland-domiciled one?

Hi all, i'm a newbie looking to start DIY investing - exploring S&P500 etfs.

i've read up alot, and seems like general consensus is to invest in ireland-domiciled etfs cos of the lower dividend tax.

wondering if anyone decided to invest in the us-domiciled etfs and can share why. for me, i'm considering it because of the high liquidity.

i intend to DCA every 3-6 months.

bit more info: i'm in my late 30s, have a 3yo kid, looking to invest long-term (at least 15 years).

thanks in advance

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Chris

25 Mar 2021

Owner and Writer at Tortoisemoney.com

Yup, high liquidity is one reason. Another reason would be that for ETFs that pay very low or no dividends at all, it might actually be more worth to invest in the US ones since US domiciled ones usually have lower expense ratios than the Irish ones. QQQ is a good example.

I guess another reason would of course be broker limitations. Many brokers (Tiger, Moomoo, TDA, FSMone just to name a few) do not actually have UK access. So those investors have no choice really but to invest through the US ETFs.

Moreover, if you do options, people basically only trade US options anyways so that's that.

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