Anonymous

08 Jun 2021

∙

General Investing

Why do some invest in US domicilied ETF (eg VOO, IVV, VT) instead of Irish domiciled ETF (eg CSPX, VWRA, IWDA) despite higher WHT?

There's a 30% WHT when investing on NYSE as compared to 15% WHT on LSE.

Talking strictly about ETFs and not individual stocks, since lse is more tax efficient why do some still invest on nyse?

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Frankie Rappaport

15 May 2020

Whenever there are relevant dividends (above 1.0 % per year, roughly)

take the european equivalent UCITS version, but also compare the annual fees (TER %) before buying.

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Andy Sim

15 May 2020

HR Professional at a Financial Institution

I'm puzzled too honestly and I'm also trying to read up more on why would people choose US domiciled ETFs. One of the reasons probably is because they are not too bothered about the dividends since they go for growth of the ETF. But if you consider the effects of WHT on the total expenses, US domiciled ETFs are actually more expensive.

Great article to explain about this: https://newacademyoffinance.com/best-tax-effici...

There is also estate taxes consideration if you decide to go with a US ETF.

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Yang Teng

15 May 2020

I haven't done the math, but there are other considerations to factor in which includes fund expense...

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