American ETF's or European ETF's? (For Swiss People)

Investing / Portfolios
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Hi everyone! I’m new here! Been investing since 2 years and is going great. I live in Switzerland. My goal is to optimize my porfoglio for a long-term goal (10-20 years). I have a specific question for all of you:

Right now in my portfoglio I’m doing a PAC and a DCA monthly in CSPX (LSE ETF), EIMI (LSE ETF) and IWDA (LSE ETF). All of those are domiciled in Ireland and I’ve choose them carefully.

In the past couple of days I was doing my taxes for the first time and I saw an article saying that for the swiss people is better to have Etf’s that are domicilied in USA like VT (ARCA) and VOO (ARCA) because of the “Module DA-1”. Because of the Tax System you basically make more money in the long run.

I’m asking myself if is a good idea to take everything from these 3 etf’s and put all the money in a VT (ARCA) and doing a PAC only here, because I saw that comprehend most of the things that I’m already investing in.

Can you guys help me telling me if is correct or no? I am still 28 years old so I think I can easily switch.

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Yes, correct.

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As mentioned by @markus654 you can get the full US withholding tax (30%) back on Amercian ETFs. 15% through your broker, 15% through the DA-1 form.

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The optimal would be to have US ETF for US stocks (i.e. VTI) and European ETFs on everything else. There are couple of MSCI World ex USA funds already existing. They would need a complement by MSCI Emerging Markets. EIMI is an excellent choice for it.

Alternatively you split even more and use index funds in 3a for some geographies.

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Or US synthetic and rest physical ala SCWX.

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Thanks guys, I think for now I’ll stick to VT on IBKR for simplicity while I build up the portfolio… I might look into splitting it or using synthetics once I hit big numbers. Right now I’m under 100k so I’m accumulating.

I think changing VT for the CSPX, EIMI and IWDA is still a great change…What do you think?

Because I have less commission payment and I’m still putting money in every sector I was. Let me know if I’m correct.

Btw thank you so much guys you are helping me a lot.

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Fwiw I did similar changes (switch to US ETFs, consolidate to a single one) and I don’t regret it. (Now I’m diversifying again, but esp early on, simplicity wins)

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I think you can build VT replacement (assuming you don’t want WEBG as one on one replacement) with WRDUSY + EIMI . This will be lowest cost possible with two ETFs.

But if you are okay with 3 ETFs -: then S&P500 + EXUS + EIMI would be needed