DA-1 - How much VT to exceed minimum of CHF 100

Up until now I have bought VRWL with a Swiss broker. Now, I have opened an account on IB and the new investments will be in VT.

Question: What is roughly the amount of VT to be held, in order to exceed the CHF 100 threshold in connection with the DA-1 (assuming the same dividend payments and no hard crash)?

Are you asking people to do the math for you? You have all the data you need publicly available - just look it up and make the calcs yourself.

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Given a dividend yield of ~2% and a WHT-rate of 15% you would need X * 0.02 * 0.15 = 100.-
So x = 33’333.- CHF

Keep in mind that VT is only 55-60% US, if that plays the calculation role.
(I don’t recall if it’s the fund domicile only or also the components that do)

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Yes, i could do the analysis an the calculation by myself. However, if someone in the community knows the math by heart, my limited time and myself thank for sharing.

ps. if in this forum only questions would be asked, which could not be answered by according research, it would be quite empty 


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Not for the withholding tax applied to dividends distributed to you. But yield was around 1.8% recently, so more like 40k.

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Thanks.

Does that mean that VEA and VWO can be listed and accepted in the DA-1 too? :thinking:

Foreign withholding taxes on paid dividends can be “counted as a tax payment” at least partially for any foreign security, such as ETF or a stock. And not only from US, but also from other countries that have it. So for example NL funds can be attractive with this respect.

Well, yes, this is what you are doing. But there are many more cases when it works. Although I personally have only US and IE ETFs.

And the US one doesn’t?

What are you talking about ?

I was asking myself about this comment :thinking: Could you please elaborate it @TeaCup?

I guess they’re talking about Bloomberg - Are you a robot? In short Vanguard managed to make their mutual fund behave like ETFs by linking them together (ETFs do not have capital gains internally since they only do in-kind redemption).

Honestly I don’t see that going away, if the IRS closes it people will just move to the ETF version.

Edit: and the patent expires next year so there won’t be anything special about it by the point.

Edit2: and even if the ETF were to have taxable gain distribution, those wouldn’t be taxed for swiss investors (after ictax gets the right data, it does differentiate between type of distributions).

Dividend yields on the broad US stock market (VTI, S&P 500, MSCI USA) are more like 1.3 these days.

I wouldn‘t say the tax/cost advantage of VT over VWRL is zero - but it’s small.

Personally I wouldn’t feel comfortable having all eggs in that basket.

Having all assets in one fund, brokerage account and jurisdiction.

I‘m not talking about the fund‘s holdings or composition.

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