facebookAre Ireland Domiciled ETFs Better? - Seedly

Anonymous

06 Jul 2021

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General Investing

Are Ireland Domiciled ETFs Better?

Is investing in Ireland Domiciled ETFs a better way to reduce tax and if its better for the long term investment. Would like to hear your thoughts on this. Thank you!

Discussion (3)

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thefrugalstudent

06 Jul 2021

Founder at thefrugalstudent.com

Hi Anon,

Ireland domiciled ETFs are better than US if we're comparing only the ETF. But if we take broker fees into account, then that's not necessarily the case. In general, the broker fees for investing in US ETFs are much cheaper than that for investing in Ireland ETFs (via LSE), so when your portfolio value is small, it makes sense to use a cheaper broker and go for US ETFs. When your portfolio grows to a substantial size, then switching to Ireland ETFs with a more expensive broker is more worth it.

I actually wrote a post about this on my blog, you can check it out if you're interested!

https://www.thefrugalstudent.com/why-im-not-inv...

Regards,
thefrugalstudent

Tan Choong Hwee

06 Jul 2021

Solutions Specialist at Providend

Ireland domiciled ETFs certainly reduce dividend withholding tax and estate tax. However, many of su...

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