Yes, it makes a difference where the fund is domiciled, especially for US equities. Ireland's tax treaty is much more favorable for physically replicating ETFs than in other European countries. I have picked out a link for you:
https://www.justetf.com/de/news/etf/us-quellensteuer-sparen-mit-den-richtigen-etfs.html
https://www.justetf.com/de/news/etf/us-quellensteuer-sparen-mit-den-richtigen-etfs.html
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@Divy Thank you!
Shouldn't the two linked ETFs then have different chart performances? At least according to the article this should be noticeable in the chart. Or am I misunderstanding this?
Shouldn't the two linked ETFs then have different chart performances? At least according to the article this should be noticeable in the chart. Or am I misunderstanding this?
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Yes, that's right. If performance is measured according to the same criteria, this becomes noticeable over time. If you compare all ETFs on the msci world, for example, they also have different performance (of course also due to TER, differences in tracking, etc.), even though they track the same index.
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•When comparing ETFs over 3 years, for example, there is a difference of around 2 percent between the best and worst performance:
https://www.justetf.com/de/how-to/msci-world-etfs.html
https://www.justetf.com/de/how-to/msci-world-etfs.html
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•@Divy Thanks for the explanation, Alex! Very helpful! In this case, however, the location seems to have at most a tiny influence on the performance.
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For me, this is just one criterion among many when I choose an ETF. Performance and costs, for example, are much more important to me.
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@Divy Tax is also important but first look at the ETF cost then tax.
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