Should I always buy the LSE domiciled ETFs instead of US based ETF?

I compare this two ETFs
QQQ ER 0.2, yield 0.55 (after 30% tax 0.385)
EQQQ ER 0.3, yield 0.43 (after 15% tax 0.3655)

The net gain based on dividends - ER a year alone on a $1000 investment for both would be higher for QQQ than EQQQ
QQQ 1000(0.385-0.2)
EQQQ 1000(0.3655-0.3)

my question is why does everyone keep saying to buy the LSE version of the ETF. The OG US ETF would also have larger volume , more liquidity, less tracking errors too. Or is there something else I'm missing out on

Discussion (8)

What are your thoughts?

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Jovan Lai

11 Jan 2021

Thanks for the good info everyone! Just wanted to value add to other readers. A common interest people have is to advocate and go for Irish Domiciled ETFs to reduce tax. And that is fantastic!!

However, do remember the dividends on many ETFs such as ARK funds, S&P500 ETFs or QQQ do not actually have that high dividend yield. The 15% tax relief switching from US to Irish ETFs may save less than you think. Of course, saving something is better than nothing right?

However, do remember to compare the spread between bid/ask price (sell/buy)

The % difference may shock you that you may actually be saving much more on ETFs with better spreads than focusing on reduce tax. Of course, if you can find the best of both worlds, that will be fantastic! So, do compare ETFs form both countries and calculate what's best, it all depends on what funds or indexes you are trying to track as well.

Happy investing/trading everyone!

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Mr anonymous

11 Jan 2021

Now that there's qqqm, it makes sense to use that instead.

Previously the point would be that you'd be investing long term into eqqq, thus the dividend over a longterm if you'd get it at a lower price, thus it would be than the calculated yield. Thus it would make sense to get taxed lesser for the dividends

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