For ISINs tracking S&P 500
Ticker - VOO ( US9229083632)
Most tax efficient and cost efficient ISIN for Swiss residents for exposure to S&P 500.
Assumption - you are able to claim full DA-1 refund. Some tax payers due to their mortage etc cannot get full refund and hence advantage reduces.
This option has higher tax efficiency for dividends but it subject to US Estate tax jurisdiction.
If you seek UCITS version in order to avoid jurisdiction of US Estate taxes or for other reasons.
Ticker - SPY5 (IE00B6YX5C33)
This option has lower tax efficiency for dividends but it is not subject to US Estate tax jurisdiction. Comparison for dividend tax efficiency for Swiss residents below
| VOO | SPY5 | |
|---|---|---|
| TER | 0.03% | 0.03% |
| Dividend yield | 1.35% | 1.35% |
| Dividend yield after US WHT | 1.15% | 1.15% |
| DA-1 refund | 0.20% | |
| Effective Taxable yield | 1.35% | 1.15% |
| Post Tax dividend yield | ||
| Case 1 -: 30% Marginal Tax | 0.95% | 0.80% |
| Case 2 -: 40% Marginal Tax | 0.81% | 0.69% |
Two comments
- I am assuming your decision to invest in S&P 500 is not driven by historical returns and are driven by your conviction about future returns. If not, then consider regional diversification. Ben Felix S&P 500
- Brokerage -: Saxo does not allow buying US domicile ETFs for standard investors, you would need to sign a waiver. Please check upfront with them. IBKR & Swissquote allow US ETFs to standard clients. IBKR, Swissquote, Degiro, Saxo and more brokers allow UCITS ETFs