Hello everyone,
I would like to start a discussion about the best #etf s for the #schweiz to start. Let's start with the most important basics:
- Dividends are taxed as income in Switzerland (even for accumulating ETFs). So ultimately it doesn't matter for tax purposes whether you have a distributing or accumulating ETF.
- Access to American ETFsas not a member of the EU and therefore access to significantly cheaper ETF alternatives (e.g. $VT (-0.08%) ).
- Agreement between the USA and Switzerland reduces the US withholding tax from 30% to 15%. The remaining 15% can be claimed in the tax return for American ETFs.
- In the case of high to very high assets, ETFs with an American fund domicile may be taxed by the IRS for tax purposes.
- In the case of inheritance it could be a documentary/bureaucratic challenge for the surviving dependants with the IRS to transfer the ETFs with American brokers (classic #ikbr ).
- From a tax perspective, Irish ETFs are the most interesting after American ETFs due to the agreement between Ireland and the USA to reduce withholding tax from 30% to 15%. However, the remaining 15% cannot be claimed on the tax return.
For some years now I have been investing in the MSCI World $XDWD (+0.35%) (World Industrialized Countries) and not too long ago the AC World $XMAW (+0.17%) (All World). This is because, in addition to my Swiss broker (#saxobank ) and #ikbr my German bank (#consorsbank ) and Amundi and Xtracker ETFs can be saved there free of charge, which would be obsolete due to the low costs of Saxo and/or IKBR. In addition, these are accumulating and I would prefer to save in distributing ETFs. With a TER of 0.19% and 0.25%, these are okay, but certainly not the best ($VT (-0.08%) or $at 0.06%).
Irish alternatives would be the $WEBG (+0.35%) (TER 0.7%, distributing, All-World), $UBU7 (+0.44%) (TER 0.10%, distributing, MSCI-World), $VDEV (+0.21%) (TER 0.10%, distributing, industrialized countries) or $XDWL (+0.36%) (TER 0.12%, distributing, MSCI-World and counterpart to my accumulating $XDWD (+0.35%) ).
Which ETF do you save in if you are a Swiss resident? Which ETF would you save in if you were in the Swiss "luxury" situation?
