facebookWhy do the roboadvisors not invest in tax efficient ETFs domiciled in Ireland, UK? - Seedly

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Anonymous

05 Mar 2020

Robo-Advisors

Why do the roboadvisors not invest in tax efficient ETFs domiciled in Ireland, UK?

Investing in low cost S&P500 or global ETFs is a great idea, but why do the roboadvisors invest in the ETFs domiciled in the US, which is not tax efficient for Singapore investors.

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Discussion (8)

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The finance industry constantly develops, at increasing pace.

Surely also Ireland domiciled products will find their way to the robos.

And with a very cheap online broker and some reading you're not anymore

dependent on robos, you can invest all by yourself.

Tai Zhi

07 Jun 2019

Chief Investment Officer at Autowealth

Dividends and bond coupons will be subject to a 30% U.S. federal withholding tax in line with tax regulations of the U.S. Internal Revenue Service. Nevertheless, ETFs listed in the U.S. are still preferred over ETFs listed in other countries like the U.K. after taking into consideration factors including liquidity, bid-ask spread, expense ratio, ETF fund size amongst other factors.

AutoWealth works with our partnering custodian to seek partial reimbursement of the withholding taxes from the U.S. Internal Revenue Service, where applicable.

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Samuel Rhee

24 May 2019

Chief Investment Officer at Endowus

Dear Anonymous,

This is a great question and Endowus has reviewed the pros and cons of accessing v...

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