Should I be worried in the long term that the local Robo Advisors are investing in the US markets that incur the 30% Withholding Tax ?

Hi Su,

I wouldn't say that it's something worth worrying about. Of course, if the robos are able to invest in Ireland-domiciled ETFs instead, it will be more cost-efficient and your portfolio will likely be marginally better. But I don't think the difference is large enough to worry about. If it really bothers you and you want to be invested in Ireland-domiciled ETFs, I'd suggest trying DIY investing instead. Not only will you get to choose what to invest in, but the total amount you pay in fees is going to be less as well.

Hope this helps & all the best!

Regards,

thefrugalstudent

Nope. Cuz the withholding tax is applied only on your dividends, not capital gains. From my understanding, ETFs give very little dividends, so the 30% does not affect you that much. If it was capital gains tax then I would b worried, but investing in robos is more towards capital gains than dividend investing.

Just my 2cents worth. You do you.