Buy VT as a swiss citizen

Is it possible to bux the VT ETF as a swiss citizen? How is it about taxes? what do i need to be aware of?

I know it was discussed a lot of times but im not really sure what it means for me to buy it and what happens afterwards (taxes,regulations and so on)

Thx for your help

Definitely, depending on your residency and broker.

Citizenship is largely irrelevant.

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i live in switzerland and currently using degiro. but i read that it is only available via IB

As a Swiss resident I am able to purchase VT on IB. As a non-US person I can reduce tax on dividend income at the broker level by filing a W8BEN. More tax withholding can be reclaimed by filing a DA-1 with Swiss tax authorities. Details have been discussed ad nauseum in various threads on this forum.

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@Krunch answered your question regarding taxes.

As for the possibilty to buy in Switzerland, currently : yes, as of 2020 : nobody knows for sure how the brokers will act (Swiss might lose access to US domiciled ETFs in 2020 - what are you going to do about it?).

So i guess the other option in 2020 would be the ftse all world ?

There is a workaround with options.

this would be? Can you tell more informations about it?

Here: https://www.bogleheads.org/forum/viewtopic.php?p=4813295#p4813295

Have you given it some thought? To me it would seem like a great reason to classify you as professional trader by the Swiss tax office.

Seriously, if we can’t buy any US ETFs in 2020, then we stick to VWRL or similar. Or save up 500k and then get the exception :wink: .

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I would probably try it. But lets wait and see how things will play out.

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Somewhat separately and assuming that we can still buy US ETFs in 2020, I really like AOR as a simple all-in-one-ETF (60% stocks 40% bonds), fair TER and decent yield. It requires no rebalancing and is globally diversified.

They also have a more conservative/ aggressive version:

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Is avoid the rebalancing really worth the 0.18% difference in TER with a homemade solution (e.g. BND+VT).

Well AOR also captures non-US Bonds and Small Cap. So would need to rebalance at least 3-4 ETFs. In the accumulation phase it is also a lot easier to keep buying monthly a single ETFs. Fewer transactions and thus lower cost.

FYI VT has small cap, and I don’t think the international bond should change the expected returns since it is hedged to USD (which is another potential issue but that’s orthogonal).

Fair point – don’t get me wrong, I love VT and the fact that Vanguard keeps dropping the fees. At the same time I also love simplicity of buying just one ETF every month.

Is there any news on if IBKR will keep US ETFs for us?

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