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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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1Anno
@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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@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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