Search found 10 matches

by daze
Mon Apr 01, 2019 3:00 am
Forum: Non-US Investing
Topic: Your opinion on debt?
Replies: 111
Views: 7777

Re: Your opinion on debt?

If you can get a noncallable debt lower than inflation rate, it's probably good.
by daze
Sat Mar 30, 2019 1:42 pm
Forum: Non-US Investing
Topic: Non-US Bogleheads who overweight US?
Replies: 23
Views: 2135

Re: Non-US Bogleheads who overweight US?

But what is your reason for overweighting US? Past performance? Hunch? 1. Paste performance. 2. Warren Buffet - never bet against US. 3. US is the only superpower in the world. Interesting. I must confess that I've been tempted to tilt towards the US. However, I've had difficulties to find argument...
by daze
Mon Mar 18, 2019 10:35 am
Forum: Non-US Investing
Topic: Index futures instead of etf to avoid withholding tax
Replies: 36
Views: 2416

Re: Index futures instead of etf to avoid withholding tax

Ok, I'm waiting for others to chime in. But I don't think these have daily cash settlement, then what would be the point of a future expiring at a certain future date? The futures settle at a agreed date. If you want your money sooner you can sell the future before that date. This is my understandi...
by daze
Sat Mar 16, 2019 12:59 am
Forum: Non-US Investing
Topic: Index futures instead of etf to avoid withholding tax
Replies: 36
Views: 2416

Re: Index futures instead of etf to avoid withholding tax

Ok, as an example, the e-mini 500 seems to equal around $140,000 of stock value. So say I have $140,000 I'd like to either buy etf's for or futures. Then I could buy bonds for $125,000 or so (and get 2.4% interest), and then buy one e-mini future that will resemble the movements of $140,000 in a sp...
by daze
Fri Mar 15, 2019 11:38 pm
Forum: Non-US Investing
Topic: Index futures instead of etf to avoid withholding tax
Replies: 36
Views: 2416

Re: Index futures instead of etf to avoid withholding tax

As I'm reading more about futures and the e-mini 500, I can't see how this should be much different or more risky compared to buying the ETFs, if you hold the future without margin. So if you have t-bonds for the full amount to cover the future, then it seems to be very similar to holding the ETF. ...
by daze
Fri Mar 08, 2019 9:06 am
Forum: Non-US Investing
Topic: Index futures instead of etf to avoid withholding tax
Replies: 36
Views: 2416

Re: Index futures instead of etf to avoid withholding tax

Should be quite easy to get 2.4% or so from t-bills. Two or three years ago, I bought a contract of E-mini S&P 500 future, when the implied financing rate was about 1.3%, and paired them with 2-year treasury which yielded 0.1% or 0.2% more. All seemed fine at that moment, until FED hiked for a few ...
by daze
Fri Mar 08, 2019 8:16 am
Forum: Non-US Investing
Topic: Index futures instead of etf to avoid withholding tax
Replies: 36
Views: 2416

Re: Index futures instead of etf to avoid withholding tax

The current implied financing rate of s&p 500 is about 2.72%. Therefore, the question is whether you can find somewhere to park your cash with decent interest rate. If you can get 2.5% for floating cash, losing 0.22% per year might be better than paying the tax. But if you only earn 2% for floating...
by daze
Fri Mar 08, 2019 6:11 am
Forum: Non-US Investing
Topic: [EU] About the cost of taxes on dividends in European funds
Replies: 27
Views: 3434

Re: [EU] About the cost of taxes on dividends in European funds

Yes, using index swaps for european funds allow to avoid taxation on dividends (0% instead of 15% if you use physical replication). Also the BNP S&P 500 fund is better than competitors because the manager made many more tender offers to get the "best" price for the index swap (hence better performa...
by daze
Fri Mar 08, 2019 1:34 am
Forum: Non-US Investing
Topic: Index futures instead of etf to avoid withholding tax
Replies: 36
Views: 2416

Re: Index futures instead of etf to avoid withholding tax

The current implied financing rate of s&p 500 is about 2.72%. Therefore, the question is whether you can find somewhere to park your cash with decent interest rate. If you can get 2.5% for floating cash, losing 0.22% per year might be better than paying the tax. But if you only earn 2% for floating ...
by daze
Fri Mar 08, 2019 1:16 am
Forum: Non-US Investing
Topic: Index futures instead of etf to avoid withholding tax
Replies: 36
Views: 2416

Re: Index futures instead of etf to avoid withholding tax

A few years ago, it's practical to use s&p 500 future instead of etf when the implied interest of future were quite low. However, the implied interest is much higher currently.