People who don't live in the US have to pay a hefty 30% dividend tax every time they receive dividends. This diminishes returns especially when you invest purely using index-tracking-ETFs. For example, the 5-8% annual returns for VOO and SPY will return significantly less when this tax is levied.
Hence, such investors are recommended Irish-Domiciled ETFs that tracks the same indexes such as the S&P500, but pay only 15% dividend tax.
Such Irish-Domiciled ETFs include VUSD.L, IWDA.L and EIMI.L.
However, such ETFs have very low volume. Is this a significant problem for index investors who are foreign? What are problems do you foresee?
Submitted May 03, 2019 at 06:46AM by sgfinancialmartinet http://bit.ly/2ZUZ4B6
