I've been saving the $LCUW (+0,37%) Since the meltdown is coming up soon, I wanted to ask you what your alternative would be for a switch? I don't know much about it, but I think that a complete sale and an entry into a new ETF only makes sense, right? Thanks for your help!

The title says it all. Forced by the consolidation of my Lyxor er Amundi World ETFs $LCUW (+0,37%) I have simplified my portfolio. The only savings plans that ran consistently for 3 years were the ones in my World and my EM.

That has now come to an end.

From now on only one savings plan and that is in the $VWCE (+0,22%) 😍 Accumulating of course 📈

The $EIMI (-0,2%) will now simply stay put. With every savings installment in the $VWCE (+0,22%) my EM share is only minimally reduced for the time being. If I feel like putting more into the EM from time to time, I still have everything I need.

So now I'm a fanboy too @Vanguard fanboy and yes, now I want one of those damn hoodies at some point. @Lorena would be proud of me 👉👈

And the donkey anyway, now we have one more commonality 😍

And anyway@DonkeyInvestor and me, that's love ❤️ and now send me your coins!

Edit: But shit man, with transaction costs and due to taxes, there's now €4000 less in my custody account. Money that no longer brings a return 😞

A popular ETF on the MSCI World $LCUW (+0,37%) is merged with another index fund. What sounds like a formal act poses a major problem for savers - they are falling into a tax trap.

Amundi is the largest capital manager in Europe, and the world fund in question is worth as much as 6.7 billion euros. In this respect, many savers appear to be affected by the merger.

Amundi currently has two almost identical global ETFs in its range. The EUR 6.7 billion MSCI World ETF (ISIN: LU1781541179), which was launched in Luxembourg in 2018, and a world counterpart with the ISIN: IE000BI8OT95, which was only launched last year and is based in Ireland. This new fund is now worth 3.7 billion euros.

The older MSCI World ETF is now to be merged into the newer ETF. In purely technical terms, this is a "merger by absorption". The older ETF, the ETF that is being absorbed or taken over, will be transferred to the newer MSCI World ETF. The owners of the "merging" ETF receive shares in the "absorbing" ETF, while the original ETF is dissolved. The absorbing Amundi MSCI World ETF remains unchanged and continues to manage the assets of the other fund.

The background to the fund merger is the different tax treatment in Europe. The older MSCI World fund is launched in Luxembourg, the other in tax-privileged Ireland. The merger is scheduled to take place on February 21. Physically backed ETFs have to pay withholding tax on dividends, which is 30 percent for US equities. Ireland has concluded a more favorable tax treaty with the USA, so that ETFs domiciled in Ireland only pay 15 percent withholding tax. The aim of the ETF merger at Amundi is to obtain better tax conditions. However, this comes at a high price for the old holders of the Luxembourg MSCI World. A fund merger that crosses a national border is considered tax-relevant in this country. The merger is treated as if the Luxembourg MSCI World ETF had been sold. All accumulated gains must be taxed in one go, i.e. final withholding tax including solidarity surcharge and, if applicable, church tax are due. And that can be expensive. And above all unpleasant.

Anyone who has invested in the Luxembourg MSCI World ETF from the outset is sitting on a profit of no less than 135 percent. The problem for investors is that since the fund is merged, investors do not receive a cent. Instead, tax is due on "fictitious" profits and this is deducted from the reference account of the custody account. However, if the reference account is not covered, savers could slip into the expensive overdraft facility or experience other inconveniences.

If savers do nothing and everything goes according to plan, the fund will be merged on February 21. This will take around five to ten bank working days, during which savers will not be able to access their money in the MSCI World ETF. The tax is then withdrawn from the reference account on the conversion date.

An example calculation makes it clear what sums are involved: Assuming savers have a capital gain of 10,000 euros and have already exhausted their saver's allowance of 1000 euros. Then 70 percent of this gain will be taxable. As the Amundi MSCI World ETF is an equity ETF that invests at least 51 percent of its fund volume in equities, it falls under the partial exemption of 30 percent. This means that EUR 7,000 is taxable, of which 26.4 percent is subject to withholding tax including solidarity surcharge, i.e. EUR 1,848. This liquidity should be in the clearing account.

Source: welt.de

Unfortunately, the start of the year went a little differently than expected... Now we continue with $VWCE (+0,22%)

$LCUW (+0,37%) - now that the taxes are due in February. I will now change this to an All World and thus also end the classic 70/30 savings. The monthly savings of $EIMI (-0,2%) has been stopped.

Hello,

I just received an email from Trade Republic stating that Amundi is merging two world ETFs and that this is a taxable event. If I have understood it correctly:

1-Amundi is selling my position in my ETF (LU1781541179 = $LCUW (+0,37%)) and transfers it to another (IE000BI8OT95);

2-I will suffer losses as a result of this decision and will not be reimbursed.

If this is correct, I think it is absurd. Is anyone here in the same situation?

I will be switching funds to another provider, probably SPDR, which has low costs and a good reputation.

Yours sincerely,

C.

The $LCUW (+0,37%) is merged and the move from Luxembourg to Ireland means that the whole thing is treated as a sale for tax purposes.

Does it now make sense to sell the ETF directly? I definitely want to get away from Amundi...

How do you deal with this?

Expand ETF positions and pursue my new strategy

Hi everyone. Now that I've reached my annual goal today (hopefully it will hold) and thus another milestone, I'd like to get some feedback.

Briefly about my strategy and my goal.

Every month I save

48% $LCUW (+0,37%)

16% $AE5A (-0,01%)

16% $ISPA (-0,37%)

10% $BTC (-1,34%)

10% $QQQ3 (+2,36%) (2.5% weekly)

$TDIV (-0,54%) is saved with dividends.

Individual shares are only bought on a one-off basis or, if necessary, subsequently.

I still have a few old stocks in my portfolio ($NIO (+0,12%)
$YOU (-0,31%) ) that will have to go soon. Apart from that, the main focus is on dividend stocks, which is good for my mindset when money comes in regularly.

My goal is to no longer have to work in 17 years if I want to.

My savings rate is currently "only" 20%, as we built a house 3 years ago and had a baby this year.

Now I'd like to rest ;) (Too many ETFs, too much crypto, no strategy ;) maybe you can think of more.