facebookShould a Singaporean hold QQQ or EQQQ or EQQU long term? - Seedly

Advertisement

Anonymous

19 Feb 2021

βˆ™

General Investing

Should a Singaporean hold QQQ or EQQQ or EQQU long term?

Is withholding tax efficiency or expense ratio more important for long term returns?

Discussion (1)

What are your thoughts?

Learn how to style your text

Chris

19 Feb 2021

Owner and Writer at Tortoisemoney.com

Taking EQQQ as the example, from their factsheet, it seems that the distribution yield is 0.39% (as of Jan 2021). Hence, the withholding tax impact is 0.0585% (derived from 15% 0.39%). On the other hand, QQQ's dividend yield is higher at 0.46%, which will give an impact of 0.138% (derived from 30% 0.46%). Hence, the cost benefit of EQQQ over QQQ is 0.0795%.

On the other hand, looking at expense ratio benefit, QQQ has an expense ratio of 0.2% vs EQQQ at 0.3%. As such, the savings from QQQ over EQQQ will be 0.1%.

Hence, using QQQ over EQQQ will beat from a pure cost standpoint. Moreover, QQQ has higher liquidity and higher AUM as a benfit as well. As such, I would likely pick QQQ.

Write your thoughts

Advertisement