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Anonymous
I understand there are withholding tax advantages with investing into Irish-domiciled ETFs compared to US ones. However, the brokers which allow investing to LSE are limited and they usually do not have an automated DCA option. As such, should I just go ahead with VT or are there any compelling reasons to consider an equivalent Irish-domiciled ETF?
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Personally, there are 3 reasons i think one should choose irish domiciled etfs over us ones in the long term:
1) lower withholding taxes (15% vs 30%)
2) no estate taxes
3) accumulating options
These 3 benefits helps to maximise returns in the long run.
I wrote an opinion piece on seedly about irish domiciled etfs (benefits, brokers and etf comparisons). check it out in my profile, hope this helps!
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Tan Choong Hwee
09 Oct 2021
Investor/Trader at Home
Another reason for Irish-domiciled ETFs is US-domiciled ETFs has 40% estate duty on excess over $60k...
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^ to whatever CTKS mentioned. You can consider VWRA/IWDA as alternatives to VT.
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Then again, it really is up to you. If it's too much of a hassle/you dont think you can have the consistency to do it manually every month, then just go ahead with VT. What matters is that you get started and stay invested.