Would it make sense to invest in CSPX instead of VOO due to withholding tax of 30%? Or would the high liquidity of VOO outweigh the cons of the withholding tax implications? Also, as I'm only interested in the capital appreciation, would i be able to select an ETF that tracks the S&P 500 AND reinvests the dividends, therefore avoiding withholding tax altogether? As I understand it, Singaporeans do not need to pay on capital gains tax. Thanks for your help! Michelle.
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Given that you're very torn between US listed and non US listed ETFs, and since your goal is to invest and hold. Why not consider low-cost index funds?
You're uneccessirly paying for features of ETFs (e.g exchange / brokerage / FX / settlement fees) if youre not using full use of that intraday trading (buying/selling) and liquidity that ETFs offer by being listed on all these exchanges.
Try looking at some good low cost Mutual funds that are SGD-hedged.
I think there’s already some great answers here but I will like to add on one thing. Even if you choose an ETF that reinvest, the withholding tax still applies. It can’t be avoided this way.
S&P500 is a great choice, Warren Buffett himself recommends it.
The 30% tax is only on dividends, not capital gain which is not much when investing in assets that are primarily focused on capital gains.
While the rest focus on cutting cost from tax on the, in my opinion, minute amount of dividends, I think SPY and VOO provide better spread, liquidity being more commonly traded. It also has higher asset under management. These are important as it reflects a better representation of the true market.
Depending on what you look for, I prefer volatility to have opportunities to buy cheaper.
S&P 500 is a good choice. You can try Interactive brokers for Ireland domiciled S&P500 ETF.
Whether the 30% are relevant depends a bit on the total sums invested from a pragmatic view.
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