Search found 4 matches

by webkonsola
Sat Oct 17, 2020 3:59 am
Forum: Non-US Investing
Topic: FT article on withholding tax and switching to synthetic ETFs
Replies: 28
Views: 2702

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

alex_686 wrote: Fri Oct 16, 2020 7:42 pm

I think I have mentioned before that the maximum risk is less than 250k. Even this can be mitigated via a single party Coedit Default Swap (CDS).
Comes with a premium ;)
by webkonsola
Fri Oct 16, 2020 5:46 pm
Forum: Non-US Investing
Topic: FT article on withholding tax and switching to synthetic ETFs
Replies: 28
Views: 2702

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

What synthetic ETFs do (at least in Europe) is they hold a basket of "random" securities and a swap agreement. The swap agreement means that the ETF will pay the basket performance to the swap counterparty, and the swap counterparty will pay the index performance to the ETF. That can happ...
by webkonsola
Fri Oct 16, 2020 8:36 am
Forum: Non-US Investing
Topic: FT article on withholding tax and switching to synthetic ETFs
Replies: 28
Views: 2702

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

Still, it doesn't "feel right" to hold some random stocks (mostly mega caps from the US and Europe) instead of the real index, even if it's a rational choice. Hi - Aren't the banks using futures to replicate the the index ? I thought that's the way to replicate through synthetic structure...
by webkonsola
Tue Aug 11, 2020 4:21 am
Forum: Non-US Investing
Topic: Lump Sum investing: all at once or spread over time
Replies: 13
Views: 1116

Re: Lump Sum investing: all at once or spread over time

Vanguard has done some research about that: https://investor.vanguard.com/investing/online-trading/invest-lump-sum Based on Research, 2 out of 3 times investing Lump Sum immediately is better than Dollar Cost Averaging (with 2% incremental returns over a 12-month period) At the end of the day it's m...