AlexSch · 2023-06-28T13:06:42.139016Z

How can it be that two MSCI World ETFs one different high dividend yield have? See pictures: $AHYQ and $IWRD

2Anno

2 different ETF, 2 different prices, 2 different dividends.

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Jesko@Jesko

2Anno

@AlexSch Hello Alex, thank you for your question regarding the dividend yield of the MSCI World. However, you have chosen 2 different indices once the MSCI World ||| and once the "normal" MSCI World. The top position in the MSCI World III is Shell and in the "normal" MSCI World is the top position Apple. Because of the different positions in the indices, there is also a different dividend yield.

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Justus@TacoEnergy

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$ please

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AlexSch@AlexSch

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@TacoEnergy Added these.

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Staatsmann@Staatsmann

2Anno

Presumably different indices being tracked and thus different (dividend) yields.

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AlexSch@AlexSch

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@Staatsmann Don't they both track the MSCI World Index?

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Staatsmann@Staatsmann

2Anno

@AlexSch But it could be that one takes the World Index based on the indexing of DWS and one takes the index based on the indexing of Vanguard etc. Issuers do not have to orientate themselves on the leading index, but also invent their own index with similar names. Otherwise, it could also be due to the replication. One replicates synthetically and the other uses optimized sampling.

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Staatsmann@Staatsmann

2Anno

@Flo87FFM Fact! sorry, I had a complete thinking error apparently. you are right of course!

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Golden Boy@randomdude

2Anno

I wouldn't put much stock in the accuracy of such figures. Perhaps the figures refer to different years, for example. Always check other sources.

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Ella M.@DividendenWaschbaer

2Anno

The different dividend yield comes of course from the different price. Calculated down, it is 1.10€ for the MSCI World and 1.07€ for the MSCI World III (also different name, by the way). That implies directly also a difference) comes out 1,07€. So that's about right.

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Erich D.@Erich_D

2Anno

Explained in more detail here: https://www.justetf.com/de/news/etf/us-quellensteuer-sparen-mit-den-richtigen-etfs.html#l%C3%B6sung

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Benne@CapitalCyclist

2Anno

Are they different asset managers, i.e. providers of the ETF?

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Erich D.@Erich_D

2Anno

One of the two ETFs is domiciled in Luxembourg, the other in Ireland. This makes a difference in terms of taxation. Example: Irish ETFs pay 15% withholding tax on dividends from the U.S., Luxembourg ETFs usually pay 30% withholding tax. A dividend of 100 USD is paid from the U.S. The consequence of this, taking into account the double taxation treaty: the Irish ETF receives a net dividend of 85 USD, whereas the Luxembourg fund records a net dividend of 70 USD.

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AlexSch@AlexSch

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@Erich_D What is better? So if I pay normal taxes I think no matter, but what if I still have a lot of money in the general loss pot?

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Erich D.@Erich_D

2Anno

@AlexSch As a rule, ETFs are held for the long term, and it is always better to take one with an Irish domicile, especially in the case of distributing ETFs with a lot of US content. Most providers have their ETFs in Ireland. I assume your ETF in Luxembourg is from UBS?

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Erich D.@Erich_D

2Anno

By the way, this is the reason why many ETFs have their tax domicile in Ireland. You can see it in the ISIN. For Irish ETFs, the ISIN always starts with IE.

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