Thans for helping.
Note that at the moment my capital is fully cash (EUR) since one year so any rational investments could be sufficient for me without the need to fine tune every possible cost . As a non expert I am just trying to avoid big mistakes with the taxation of other regulatory things.
Most countries have a similar system like Switzerland, where you can get the 15% of withheld taxes back. It isn’t a huge issue if you can’t get it back because the US ETFs are also cheaper.
You won’t be able to buy new shares in Europe.
Thanks, in case I am not forced to sell then I should probably consider to buy american ETFs since I planned to invest 70% of my capital and that could save me some commissions (expected 90/100Fr saving as per the reference cost you provided in your previous message)
Deciding the domicile of the ETF is quite complicated because I don’t really know what are all the pros and cons yet and considering the amount of money invested I am a bit concerned about taking the step or not.
I’m not sure about the tax treatment for US dividends to an etf in Luxenbourg. Note that this etf mearly has a bit over 100 holdings and holds Total return swap. You would probably be better of just buying a real swap etf like the one from invesco.
Swap etfs are more tax efficient, because they do not lose any withholding taxes.
To be honest I chose both the ETF without going to deep in technicalities (I checked the fund size, costs and compared the back-tests with few other combinations) . It is actually a combination copied by sample lazy portfolios using EU ETFs here
I suppose the Invesco ETF you are talking about is [IE00B60SX394] (Detailed Comparison for ETFs | justETF) . That’s IE domiciled . The TER is a bit higher though . Do you believe I should reconsider?. I suppose that the 15% of taxes I save investing in IE will probably reduce the TER by some decimal points.
Besides that , how did you check the number of holdings? I read the fact sheet and I could not find it.
You want to hold quite a lot of bonds. Do you need the money in the next 5 years? When do you want to move to Europe?
I don’t have plans to spend those money now but I am not sure. My primary intention was to avoid the negative interest on my bank account investing in ETF, create a conservative portfolio and try to speculate (rebalance/become more aggressive) when the markets fall.