You’re not happy with that one? (written by international tax experts) While they rant about the treaty (obviously they’d like it to be even more favorable, which is why they take amounts way higher than the exemption), they also give concrete examples of how the exemption applies (in short if your worldwide assets are below the current US exemption, currently 11M for single filer, you’re fine).
Edit: that said being above 60k will mean having to do all the IRS filing, so why you might not owe anything to the IRS, doing the filings is probably not super fun.
Hi Bojack, unfortunately I didn’t find the blog entry which I was referring to.
Anyway, there’s a thread about securities lending (Wertpapierleihe) here
It’s in German though. Seems that Vanguard is getting more profit from lending, plus they have smaller TD (tracking difference) vs the index than other funds.
So you have to pay the TER of 0.26%, but if the Vanguard fund performs better vs the index (let’s say 1% vs 0.75% for the other funds), then you pay less overall for Vanguard.
Checked again, and it’s indeed the TD which is playing a big role. You have a TCO for an ETF, which consists of internal costs (TER, securities lending, swap fees) and external fees (bid/ask prices, taxes).
In the last 5 years, VWRL has had a negative TD (meaning they were better than the index), see here
If you compare to ACWI funds, that’s a lot better: here
So the VWRL is better in terms of TCO than a lot of other ETFs, even though the TER is higher.
Completely agree with you and I assume(d) the same.
Except that I talk to one of the person who wrote the article with my specific usecase (family situation) and the answer was I wasn’t exempted… which is why I’m confused.
Anyway, will clarify this and keep you posted!