facebookHi there! Am just starting stocks investing, planning to put into ETFs that tracks s&p500. Would you have any recommendation? (And any suggestion how much to buy in each time to be worth any fees) - Seedly

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Anonymous

15 Jan 2022

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General Investing

Hi there! Am just starting stocks investing, planning to put into ETFs that tracks s&p500. Would you have any recommendation? (And any suggestion how much to buy in each time to be worth any fees)

Or should I lump sum instead of dca?

Using ibkr.

Thanks!

Discussion (3)

What are your thoughts?

Hi there,

I personally use Interactive Brokers to invest in irish domiciled ETFs such as CSPX (S&P500) or VWRA (all world index).

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First, there are a three key reasons for choosing to invest in Irish Domiciled ETFs:

  1. Investing in Irish domiciled ETFs means lower withholding tax of 15% (compared to 30%) when investing in US domiciled ETFs. This recurring fee compounds and will snowball to huge amounts over time.
  2. Accumulating ETFs are available which means any dividends will be automatically reinvested, saving on commission fees and maximising compounding as you don't have to worry about buying full shares.
  3. Finally, no estate taxes to worry about. Estate taxes are taxes on your US assets when you pass on.

Once you are convinced about the benefits of investing in irish domiciled ETFs instead of their US counterparts, it is time to choose a brokerage. I personally use IBKR because after research and comparison with other brokerages, IBKR has extremely competitive fees. In fact, they have recently removed their maintenence fee, allowing us to save on those pesky recurring fees!

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If you have a significant amount of cash on hand, I would lump sump a portion and dollar cost average with the rest. But I wouldn't wreck my brains over this decision. The more pertinent thing is to get started investing!

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For a full guide on irish domiciled ETFs, check out my article here http://thedollarsapling.com/2021/09/17/irish-do...

For additionaly resources about all things related to personal finance and investing, join my telegram channel https://t.me/thedollarsapling

Depends on your starting capital? You can lump sum a portion of it first and DCA going forward

https://seedly.sg/opinions/the-best-s-p-500-etf...

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there are studies which suggest...

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