Rusmin, FYI. You do have a US subscriber. I love your channel and I just watch for the general investment philosophy since I don’t know the Singapore stock market. There are enough ideas for investment in the US market. Thank again to the team for your service. Love the accent!
I invest only in Irish domiciled ETFs for my US allocation to avoid the risk of US estate duty and withholding tax. Not just for stock based ETFs but also for bonds ETF.
Great content. thank you! this solves one of my worries. I am now thinking that I should (over time, as I am not young!) sell individual US stocks and buy ETFs which won't attract estate duties. can you do a feature on such ETFs?
Thanks, guys. It’s really so nice of you to educate people like myself on this. I always learn so much from your videos. Keep it up. Just to double check regarding SPLG, are you referring to the etf currently trading at around 62.50 ?
I lump sum into cspx in year 2022 if i not wrong just because of seeing finance youtubers talking about it. After purchasing, the cspx price drop and i was in a negative for about a year, but i didnt bother, just left it there as they were my extra funds. Come 2024, cspx has now increase almost 30 percent of its price and now i am ahead at 30 percent haha.. Now just thinking whether should do another lump sum.
Great video as usual. Question - I have been wanting to switch my SPY to CSPX - since both SPY and CSPX mirror SPX, does it make sense to just sell the SPY and immediately use the proceeds to buy the CSPX on the same day ? Similarly, the Ireland Domicile for QQQ would be CSNDX?
Depending on your fund size, you can also stagger your transfer from SPY to CSPX. It's really your personal preference. Yes, an Irish-domiciled equivalent for the QQQ would be CNDX. However, the dividend yield for the QQQ is much lower, so you might not save much in terms of withholding tax.
What is the fees that we need to look into for IBKR? I look at their pricing examples and need to pay market data fee, round trip trade fee, etc... It could be quite a substantial amount to maintain to hold the ETF.
IBKR charges US$1.70 minimum for USD-denominated trades on the London Stock Exchange. Live market data fees are optional. Round trip fees are simply a buy and sell trade, so a round trip trade is simply twice that for a single trade. Hope this helps! www.interactivebrokers.com/en/pricing/commissions-stocks-europe.php
Thank you for your information and sharing. If US ETFs and stocks are purchased and held from a joint trading account, if one of them dies, will the other inherit directly without having to pay estate tax?
Technically, the proportion of assets owned by the deceased in the joint account is still subject to estate tax in the event of passing. money.stackexchange.com/questions/149317/taxes-on-joint-tenants-with-rights-of-survivorship-stock-brokerage-account-upo www.bogleheads.org/forum/viewtopic.php?p=4375485#p4375485
1. I use the Superhero app to invest. Can you do a video on this app? E.g. pros and cons. Also, this app only has the Australian and American stocks available. 2. I live in Australia. Can you do a video on the best ETF if I live in Australia?
Guys this is good information. A 40% estate tax on US stocks is quite frankly mindboggling. However, I check with my stock broker (a local company), and they that the US stocks held in their brokerage should not be subject to the estate tax. Is that the case?
No, all U.S.-based assets including U.S. stocks are subject to estate tax. www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-us-estate-and-gift-tax-rules-for-resident-and-nonresident-aliens.pdf
What about those options offered by Endowus, its more expensive ? I presume its also subjected to dividend withholding and estate taxes like US domiciled.
Understand the rationale to choose Irish-domiciled over ETF domiciled in US. Curious though - Does the same advantage applies for ETF domiciled in other countries such as China/ Thailand?
It depends on the country's tax laws and its tax treaty with your resident country. For example, China has a 10% dividend withholding tax, but it could fall to 5% if your resident country has a tax treaty. taxsummaries.pwc.com/peoples-republic-of-china/corporate/withholding-taxes
Hi there. Do you guys know about a new S&P500 Irish Domiciled ETF? It’s called SPYL, with a much lower expense ratio of 0.03%. But this ETF is traded on EBS and AEB only. I need an expert like you guys to analyze through this ETF whether it’s valuable for the long run since it is quite new as well. I would be thankful if you are willing to make a video regarding this. Much appreciated thanksss😊
You could do that so someone else maintains access to your brokerage account. Technically, the proportion of assets owned by the deceased in the joint account is still subject to estate tax in the event of passing. money.stackexchange.com/questions/149317/taxes-on-joint-tenants-with-rights-of-survivorship-stock-brokerage-account-upo www.bogleheads.org/forum/viewtopic.php?p=4375485#p4375485
Hi, why wasn't the spread and transaction fees, amount invested each time, brokers (e.g. IBKR) factored in? I figured that would have been more holistic, i think this might potentially skew the decision depending on the different variables?
expense ratio is too high for udvd at 0.35% and is dividends are distributing and not accumulating like cspx. Either way both UDVD and GGRW doesn't track S&P 500 so is not a CSPX alternative
Hi Adam, Rusmin and Victor, if the US shares are held in a joint account and if one accound holder passes on, would the other account holder be subjected to estate duties?
Yes, from what we know, the proportion of assets owned by the deceased in the joint account is still subject to estate tax in the event of passing. money.stackexchange.com/questions/149317/taxes-on-joint-tenants-with-rights-of-survivorship-stock-brokerage-account-upo www.bogleheads.org/forum/viewtopic.php?p=4375485#p4375485
Hello, Thanks for the video. I started investing in VUAA, but now just thinking about it as it is in LSE(UK). I read that there is a 10% capital gains tax in UK, In that case how should we manage the filing of tax. Just worried that it may affect my withdrawal. Thanks
VUAA is Irish-domiciled; Ireland is not part of the UK. In any case, there is no capital gains tax on UK stocks for non-UK residents: www.gov.uk/capital-gains-tax/what-you-pay-it-on
Will ticker symbol "IVV" under Australian Securities Exchange Ltd (ASX) comparable too? Australia-Singapore Tax Treaty dividend income come at 15%, with ETF Management Fee at 0.04% and under Dividend reinvestment Plan (DRIP) too.
What is the best to buy and which platform to purchase? This is for non US citizen and plan to do a long term accumulative for 10-15 years. What is best way? Inject monthly a fix amount or now is good to pump in sum like 100k and let it sit
Hi, great content, i still have no idea after repeat the video and still don understand, as a Singaporean, if spy is to avoid, can you please advise me which etf is able to avoid any fees so that able to pass on to my spouse or child where i am gone. Waiting for your kind reply. Also which broker to use
I’m following for sometime and has same performance. I was subscribing VUAA for a year now but this month just started buying SPYL from now onwards. My doubts if you can help me is: 1) should i sell VUAA and reinvest all with profits in SPYL, or 2) maintain VUAA and continue buying SPYL. Keep up the good work.
Hey Team, but if I were to DCA small amounts (100 SGD) every month into S&P500 ETF, would it be advisable to buy US domiciled ETF using brokerage that have free US trade?
Hi Grace, at smaller amounts it'd be better to invest quarterly or semi-annually to save on brokerage fees. We'd still go with an Irish-domiciled ETF over a U.S. one.
Are there any irish counterparts ETF for FTEC, QQQM, VTV? The holdings Not necessarily have to be the same, at least 80-90% similar will do I have found some, IUIT for FTEC, R1VL for VTV. What do u guys think?. Thx and cheers from Malaysia
How about setting up a Singapore company to hold US equities since it’s legally a separate and perpetual entity? Put wife and kids as directors in case you up the lorry. Of course, there are maintenance costs but negligible compared to US estate tax esp when portfolio is $1 million and above. Will the above work?
That could work if your fund size justifies the running costs. You will need to justify that your gains are not of an income nature to avoid the 17% corporate tax.
There's an initial charge of up to 2% according to their webpage. It's best to email Lion Global Investors directly to ask about dividend withholding tax and U.S. estate taxes for their funds. www.lionglobalinvestors.com/en/fund.html?officialNav=IUSS#information
CNDX is listed on the London Stock Exchange which IBKR has access to. You may want to check again. www.interactivebrokers.com/en/pricing/commissions-stocks-europe.php?re=europe
Yes, commissions on IBKR are US$0.35 minimum for NYSE and US$1.70 for LSE. This difference will only matter if you're investing very small amounts each time.
For SRS, the only S&P 500 options are S27 (which is domiciled in the U.S.) or the iShares US Index Fund (which is a synthetic ETF) through Endowus. www.sgx.com/campaign/etf-investing-srs endowus.com/insights/how-invest-s-p-500-index-singapore
It depends on what you prefer. Lump sum investing offers potentially higher returns, but carries the risk of market timing. DCA reduces this risk by spreading investments over time, providing more stability during volatile periods.
Cspx vuaa since they are accumulating, i dont even pay 15% dividend tax..zero dividend tax, correct ? 0.07% commision is only based on initial invested amount or each year can be different depending on the total amount of etf ? Tks
If the objective is long term investing (aka like a savings account) and liquidity is not that crucial, the synthetic replicating UCITS I500 Swap ETF (S&P500) and UCITS EQQS Swap ETF (Nasdaq) are great candidates because they do not incur dividend withholding tax due to the non-dividend distributing nature of the underlying assets.
@@TheFifthPersonChannel I am biased toward JEPQ. 8.80% dividend yield vs SPY 1.34% SPY ETF has larger basket of holdings. These newer ETFs like JEPQ and many others now concentrate more into 80-100 companies vs 500 companies
I am a subscriber from the US. There are many tech ETFs such as QQQ and one from Vanguard I like, VGT. Not sure if you can get STK, it’s a Closed End Fund with a distribution of around 6%, and 10-year total return of close to 20%. I own this CEF.
For irish domicilled etf. Only IKBR have. But they have the annoying currency exchange cost. Its expensive. So not that worth for people investing sub 1k a month.
IBKR's foreign exchange rates are one of the lowest in the brokerage industry. You can also invest quarterly/semi-annually to reduce transactions costs.
Yes, there's a US$2 minimum fee when exchanging currencies on IBKR, but its forex spreads are among the lowest. So you're right that it doesn't make sense at small amounts; it's better to accumulate and exchange/invest larger amounts at wider frequencies. In any case, the U.S.-domiciled SPY and the Irish-domiciled CSPX both trade in U.S. dollars, so you need to make the exchange anyway.
@@TheFifthPersonChannel thanks for the quick reply. Not too sure but why are mega investors such as adam khoo in Voo instead og CSPX? Really am confused about that.
