Okay.
Then I think IMID is only real alternate for a one ETF solution
Thatâs the magic of ETFs, compared to mutual fund they avoid internal capital gains since they only do in-kind transfers with the AP.
(thatâs why vanguard mutual funds are often preferred in the US since they have the patent for structuring the mutual fund based on the ETF, patent is expiring soon tho)
So we are back to the fact that there is no good one-ticker solution to VT on the UCITS side.
Taxation of events occurring within ETFs is magic indeed.
Only @nabalzbhf or @Dr.PI can handle this.
However CGT even for us as investor is only when we sell the ETF.
If you want all components of VT , then yes. There isnât one to one alternate
Following can come close to it.
WRDUSY + EIMI + WSML
So not so simple (thatâs the thing I also donât know, UCITS are more expensive, might want to split US vs. not and get a synthetic US one, etc.)
Also some people have 7 digits portfolio split across brokers (some brokers I donât want to trade with because the cost would be really high, so need to also transfer back to IB. So not so trivial and might need to plan ahead
Yes, and would stay that way as itâs the country of our domicile which decides that. I was more worried about internal costs being miracled to mirror a CGTs but will look up what @nabalzbhf mentioned. In fact I saw something about the Vanguard patent on reddit today but didnât have time to check it.
I think about similar combination, but using state street:
SPPW+EIMI+WSML.
Just donât understand why SPPW (most liquid large caps) still do some sampling for a fund of 11 bln Euro.
Or on FTSE Vanguard side VHVE (FTSE developed)+VFEM (FTSE emerging)+WSML. I like Vanguard, but this combination would require an ugly mix of FTSE and MSCI indices.
Well.
Itâs not so simple. Today we donât see CGT because of the treaty DTAA.
Even with ETF route, if US wants to tax foreign investors for CGT in US, then we as investors would incur a tax too but this most likely would only happen when ETF itself redeems the units. And hence it would move the NAV of ETF up and down.
This is quite visible in ETFs tracking India. They continuously need to âprovisionâ for capital gains tax that can incur because you never know when they need to sell the underlying units.
I agree, it is also not so easy to replicate VT on the UCITS side.
And weâll have time.
If they introduce capital flow restrictions overnight, it would be another story.
I was just promoting European provider
This is my personal goal for 2025 to support European ETF providers as much as possible
SPDR route can be ** SPDR ACWI + WSML**
You might be too much worried about sampling. If you look at SPDR ACWI stock list, itâs too many stocks. I donât really think that the ones they exclude really are material ones. They might just add to cost and not much to returns.
If that happens, there wouldnât be much to move around. Market would be down 50% if foreign capital is frozen because it would simply mean no more foreign money gets in
SPYI has now 3 705 stocks while the index has 8 600.Tahtâs quite a sampling; tracking error is 0,52%. No thanks (this is likely an autistic index purity pursuit on my part
Actually I was referring to SPDR ACWI which has 2277 stocks and index has 2645
I had the same thought ages ago. While VT having âeverythingâ (in fact VTI+VXUS have about 3000 more) Iâm personally not worried that VWRLâs sampling will miss some crazy hidden diamond stock from Lesotho which will become the new Microsoft. If it is in line to become a new Microsoft itâll be picked up soon enough. Fun fact, as an ignorant white guy I looked up Lesothoâs stock market. There isnât one, HOWEVER Lesotho companies can be listed in South Africaâs stock market which has, apparently, beaten the S&P500 on a 100-year basis (along with Australia). That said, I understand someone wanting to sleep better knowing they truly bought the haystack.
So it may not be so simple but itâs also not unthinkable, and thereâs precedent and mechanism to do it.
For 269.45$ and 69.83$ each and 0.881 USD/CHF
Omg I canât believe I got lucky once xD
What in the market anomalies is this!
We truly live in unprecedented times.
New long-term trend just dropped: The end of American exceptionalism
So according to the Trump administration, Switzerland charges the US 61% tariffs, so the US will now charge Swiss imports with 31% tariffs.
Anyone know how they got to 61%?