Search found 14 matches

by hushroom
Thu Jan 14, 2021 1:55 pm
Forum: Non-US Investing
Topic: Interactive Brokers - Account Inheritence
Replies: 12
Views: 1036

Re: Interactive Brokers - Account Inheritence

I have been wondering about inheritance issues too. Which jurisdiction is actually relevant - the location of the broker, the client, the beneficiary, the assets themselves (e.g. Irish ETFs), ...? The actual beneficiaries could be different depending on the jurisdiction - some countries (don't) reco...
by hushroom
Sat Oct 24, 2020 10:02 am
Forum: Non-US Investing
Topic: FT article on withholding tax and switching to synthetic ETFs
Replies: 28
Views: 2850

Re: FT article on withholding tax and switching to synthetic ETFs

krasnall wrote: Sat Oct 10, 2020 6:45 am In Europe, UCITS swap based ETF limit the counter party risk to 10% of the fund's value.
Any source for this? If the CP risk is only 10%, it seems a worthwhile tradeoff for the increased performance, especially since there is some CP risk anyway in physically replicating funds that lend shares.
by hushroom
Fri Oct 23, 2020 3:08 pm
Forum: Non-US Investing
Topic: FT article on withholding tax and switching to synthetic ETFs
Replies: 28
Views: 2850

Re: FT article on withholding tax and switching to synthetic ETFs

For MSCI World and most others there is basically no difference in real returns between synthetic and physical Apparently, the MSCI World index would not satisfy this: This Invesco article from June 2020 claims synthetic replication is advantageous for the MSCI World index as well (emphasis mine). ...
by hushroom
Mon Sep 07, 2020 2:49 pm
Forum: Non-US Investing
Topic: IB Doesn't Like Panama Anymore [Interactive Brokers]
Replies: 33
Views: 3178

Re: IB Doesn't Like Panama Anymore [Interactive Brokers]

Mostly out of curiosity, approximately how much does such a structure cost to set up and maintain? Panama, BVI, or any other "tax haven" if anyone has experience... Apart from the costs, is there any additional friction to use such a setup? How does it actually work when you want to deposi...
by hushroom
Mon Jul 27, 2020 9:23 pm
Forum: Non-US Investing
Topic: [How can I buy an index fund like Vanguard total stock market? (Bulgaria)]
Replies: 13
Views: 1425

Re: [How can I buy an index fund like Vanguard total stock market? (Bulgaria)]

Don't forget to subtract any costs from those returns. E.g. your transaction costs, taxes, the expense ratio of the fund (currently VWCE charges 0,22% annually, which is reasonable for such a fund)... I won't actually have any transaction costs, since I will be exchanging BGN to EUR at the best rat...
by hushroom
Mon Jul 27, 2020 10:41 am
Forum: Non-US Investing
Topic: [How can I buy an index fund like Vanguard total stock market? (Bulgaria)]
Replies: 13
Views: 1425

Re: [How can I buy an index fund like Vanguard total stock market? (Bulgaria)]

Great, I was thinking about the same numbers and I am definitely not expecting a steady 7-8% return each year, some years it will be negative, some it will be positive, but over the course of 2,3,4 decades if it sums up to 7-8% a year, that's perfect and just what I am hoping for and everyone else ...
by hushroom
Sun Jul 26, 2020 3:55 pm
Forum: Non-US Investing
Topic: [How can I buy an index fund like Vanguard total stock market? (Bulgaria)]
Replies: 13
Views: 1425

Re: [How can I buy an index fund like Vanguard total stock market? (Bulgaria)]

For the equity portion of your portfolio, you can simply buy Vanguard FTSE All-World UCITS ETF Accumulating (IE00BK5BQT80, ticker VWCE on Xetra Frankfurt). It covers almost the entire world stock market. Shares listed on Bulgarian and EU/EEA stock exchanges are exempt from capital gains taxes for Bu...
by hushroom
Wed Jun 24, 2020 8:23 pm
Forum: Non-US Investing
Topic: Worry about low volume of VHVE + VFEA
Replies: 19
Views: 1823

Re: Worry about low volume of VHVE + VFEA

Suppose you have $10,000 to invest today for 20 years (still 5% CAGR) but you spend your efforts on reducing fund costs by reducing your withholding taxes. E.g. switching to a developed world fund (e.g. VDEV) with a 0.13% TER and a lower withholding tax rate (I forget how much exactly). Let's say i...
by hushroom
Thu Apr 30, 2020 11:54 am
Forum: Non-US Investing
Topic: Biggest concern with ETFs: difference between exchanges
Replies: 10
Views: 583

Re: Biggest concern with ETFs: difference between exchanges

Today's closing prices for IE00B53SZB19 are close enough:

Amsterdam 461.35 EUR
Xetra 461.05 EUR
Milan 461.62 EUR

The YTD performance you see depends on this year's opening price (first trade), which again could vary because of different times of the first trade at different exchanges.
by hushroom
Thu Apr 30, 2020 10:58 am
Forum: Non-US Investing
Topic: Biggest concern with ETFs: difference between exchanges
Replies: 10
Views: 583

Re: Biggest concern with ETFs: difference between exchanges

Apart from different currencies, you are probably also getting prices from different times. Some exchanges are giving you real-time feeds and some are delayed. Exchanges also have different operating hours and holidays. Even when two exchanges are both operating and feeding you real-time data, it co...
by hushroom
Mon Apr 27, 2020 11:55 am
Forum: Non-US Investing
Topic: Tax Considerations for NRAs
Replies: 34
Views: 1886

Re: Tax Considerations for NRAs

Yes, if you plan to hold long-term, accumulating should still be preferable in your case, because you delay the local tax payment. You also avoid any dividend reinvestment transaction fees. Often the same ETF is traded in different currencies on different trading venues or even on the same venue (fo...
by hushroom
Sun Apr 26, 2020 12:04 pm
Forum: Non-US Investing
Topic: Tax Considerations for NRAs
Replies: 34
Views: 1886

Re: Tax Considerations for NRAs

Just to clarify, my local dividend tax is 6% but my understanding is that L1 tax (withheld by a fund) should cancel out my L3 tax on dividends thanks to provisions on double taxation. L1 tax is withheld from the fund by the country of domicile of the dividend paying company. I am almost certain you...
by hushroom
Sat Apr 25, 2020 8:42 pm
Forum: Non-US Investing
Topic: Tax Considerations for NRAs
Replies: 34
Views: 1886

Re: Tax Considerations for NRAs

The dividend withholding tax is WITHHELD on BOTH distributing and accumulating ETFs. There are no free rides. WSML is an accumulating ETF. We've paid dividend withholding taxes ever since we bought it in Jan 2017. If you don't believe me look at the UK Ishares annual reports on WSML. Divide "d...
by hushroom
Sat Apr 25, 2020 6:03 pm
Forum: Non-US Investing
Topic: Tax Considerations for NRAs
Replies: 34
Views: 1886

Re: Tax Considerations for NRAs

What about accumulating funds such as CSPX and IWDA? You mention in the OP that you pay 0% capital gains tax and 30% dividend tax. Therefore, you should choose accumulating funds. It's a no-brainer in your case. With distributing funds you would pay 30% to your country on every dividend distributio...