IE vs US domiciled funds (VWRL vs VT)

You really need to do your homework before telling people wrong information. Please make sure that you look at all parameters…

Physical vs synthetic and also the respective tax reforms. What you say was correct but unfortunately not since 3years…

In that case, apologies. I guess you never stop learning. Wasn’t aware that some ETFs are exempted from withholding tax, also don’t remember a mention of it in this forum. I added a strike-through line over my comment, not to confuse people :slight_smile:

Are you comfortable with holding synthetic ETFs though? Is it realistic that a synthetic ETF could do something wrong (like totally miss the benchmark) and run into trouble?

Edit: here I found some info:

I wonder why the last requirement is there. Otherwise most big index ETFs would fall into the exemption, which would be nice…

The Invesco S&P 500 UCITS ETF Acc aims to provide the performance of the S&P 500 Total Return (Net) Index.
The Invesco MSCI USA UCITS ETF Acc aims to provide the performance of the MSCI USA Total Return (Net) Index.
The Invesco MSCI World UCITS ETF Acc aims to provide the performance of the MSCI World Total Return (Net) Index.

I’m sure (at least I hope :smiley: ) they do better than their benchmark (esp. since iirc the net index counts 30% withholding, not even 15%), but that’s still their benchmark.

  1. US Inheritance Tax
  2. FATCA disclosures to US authorities of your information (I am an Iranian citizen worst case seizure of my assets)
  3. US Law and not Europan Law
  4. US Trading times and not European trading times
  5. Multiple Europan exchanges to trade

Yes they do outperform the Net Benchmark by approx 50bps after fees…

It was discussed either in Vanguard closes some European ETFs or Tax optimisation for ETF investing

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Yes I am more than happy to invest in synthetic ETFs as they are even safer than most physical ETFs that do securities lending…it is all ownership rights and even if the counterpart or asset manager would default you have still the securities that the ETF invested in…

The Hire Act 871m treats futures and synthetic ETFs similar now…

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Synthetic ETFs track the Benchmark even better and closer than Physical ETFs…there was never any default of a synthetic ETF either not even in 2007/2008…

Hi! Rookie here, I wouldn’t fully know how to define my portfolio analyzing the ETFs. So I’m going with VT. Because it’s what I learnt reading blogs and this forum.

I like the idea of assets not related to the US, at least not 100%. And I had no clue about those UCITS ETFs, why would you recommend them over VT?

Please, anyone can provide some data to compare both portfolio?

Thanks!

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I think it’s a wrong place to start. But just read my first post to get the grasp of the difference. ETFs domiciled in the European Union are usually (or maybe are even required to be) UCITS.

UCITS funds are perceived as safe and well-regulated investments and are popular among many investors looking to invest across Europe

ETFs domiciled in Ireland (IE), like the ones from Vanguard or iShares, are UCITS. US ETFs, on the other hand, are not. I don’t know if UCITS actually provides some layer of security to the investor, or it’s just another bureaucratic obstacle that the guys in Brussels have come up with.

The question has been - indirectly - been answered today.

US stock brokers - including IBKR - are colluding in blocking retail investors from buying certain exchange-traded stocks as I am writing this.

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Now, VT surely isn’t GME. Blocking access to VT will probably be the last thing they do or want to do. However, today serves as a reminder that given appropriate circumstances - however outlandish they may seem* - you can get screwed by US brokers and/or market participants.

* and if anything, these circumstances will be deemed unimaginable or unforeseen

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Go VWRL, Go Swiss Broker!

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This is unbelievable to watch… reconsidering my thoughts about US broker and VT

off-topic:
IBKR just also showed me the restriction.
My EU bank just filled my GME buy within minutes, through NYSE.

Hehe, Casino Thursday?:slight_smile:

Having spent a lot of time on Bogleheads resulted in viewing the world in US, exUS developed and emerging markets. Don’t know why, but it influenced me. I even started believing that the US is the only relevant stock market and the rest is just for diversification.

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You don’t know why? Maybe because the forum is dominated by Americans. Plus US takes over a half of global market cap. And it’s the most available and cheapest to buy stock (fees). And the last 10 years it has been outperforming the rest of the World. But it doesn’t have to stay that way. Maybe it takes 10 more years until the trend changes, but I think it’s reasonable to assume that it will change.

US brokers, maybe. But VT? How does a broker blocking you from trading a very volatile stock change the view if an ETF is a good investment or not? You could also hold VT with a Swiss broker.

Maybe I’m just too calm about this, but as a passive investor I do not really care if they block me from buying stocks that I don’t care about. One could be frightened about the outlook of what they could do, if they have done this. But I think it’s a long way from causing any trouble for the average passive investor.

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Just wanted to share that VT and some other Vanguard funds (VEU, VXUS, VTI…) can be bought for free at eToro. If you ignore the social trading crap, it’s a good platform for that limited use case.

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