Choosing a Brazilian ETF

Hi! I need your Mustachian help!

I want to invest in a Brazilian ETF. I know that many of you would suggest a US-based fund, but I prefer a EU-based one due to the uncertainty of future situation between US and CH in this domain.

I found two iShares ETF. They are almost identical, with the same index, similar AUM (roughly 150M each) and reasonable liquidity. The point is that one has lower TER (0.33%) but is based on Germany, whereas the other has higher TER (0.74%) but is in Ireland. Which one is in your opinion more cost-efficient, considering both TER and tax consequences?

Here the two funds:

https://www.ishares.com/ch/intermediaries/en/products/304304/ishares-msci-brazil-ucits-etf-de-acc-fund
https://www.ishares.com/ch/intermediaries/en/products/251853/ishares-msci-brazil-ucits-etf-inc-fund

Thanks in advance for your help!

What uncertainty?

If you insist on European ones, the German one is obviously cheaper.
Still, AUM = USD 169,002,401

Compare that to the US one (EWZ):
USD 5,489,655,265

There is just no comparision, and the liquidity difference is therefore huge (you’ll basically be making trades with market markets at large spreads).

Hi glina and thanks for your reply. By uncertainty I meant the regulation issue. How long will we be able to trade US-based funds. Correct me if I am wrong, but if I understood it correctly many brokers already blocked the possibility in 2020.

Regarding the German vs Irish fund, I just wanted to check if the Irish one has fiscal advantages due to special agreements with Brazil or Switzerland or not. Thanks again!

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