Anonymous

12 Feb 2020

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General Investing

S&P500 or Ireland-Domiciled ETFs?

I am interested in investing S&P500. From what I understand, the Ireland-Domiciled equivalent has a 15% witholding tax as compared to 30% if I were to buy it directly from the US exchange. Why would anyone want to pay more tax by choosing S&P500 over the Ireland Domiciled equivalent? Which should I buy and why?

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slowisfast

29 Mar 2020

Ireland Domiciled vs US Domiciled S&P 500 ETFS?

You will still be charged I believe. The fund is an accumulation of the underlying stocks which do pay dividends. Accumulative funds just help you to reinvest the dividend payout but there is still a dividend payout from which you will be taxed.

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Kenneth Quek

12 Feb 2020

I think those who did not choose the ireland-domiciled equivalent either do not know of the 30% tax or do not realise the impact that the tax has on their expenses. They take it as part of the costs of investing and do not realise there is a cheaper option.

Ireland-domiciled is cheaper.

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Frankie Rappaport

11 Feb 2020

Yes, gabriel is right. if given the choice IR-domiciled ETFs are prudent tax wise. total costs (TER,...

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