I see there has been discussions about real estate but not really so much ETF REIT’s (Real Estate Investment Trusts). From my perspective I see them playing a small but not insignificant role in a balanced portfolio. I would like to include a REIT ETF fund in my portfolio if it makes sense for me.
Ideally I would have liked to place around 10-15% of my portfolio into REIT funds but I’m also uncertain whether this is actually a wise decision for the Swiss investor paying Swiss taxes. As REIT’s are legally obliged to pay out most of their gains in the form of dividends/income rather than growth I see this as an issue for Swiss investors, having gains eaten away by tax. Compared with other investments I am concerned that too much of any gain in investment will be taxed away?
Is there a specific type of REIT that makes more sense to the cost/tax concerned Swiss investor? For example Mortgage or Equity REIT?
Do others on this forum think that a REIT ETF should play a role in a Swiss investors portfolio or are the tax costs too high?
What sort of % loss of gains would be taxed away due to income tax? Presumably this is related to my own personal circumstances and income level.
If a REIT etf belongs in a Swiss investors portfolio should it be global, region or country specific?
Is there any positive advantage to the high capital gains tax paid on the REIT? (capital losses will also be “taxed” in this manner so perhaps somewhere in a bad year they could be useful! - obviously we all hope/expect our investments to go up in value though!)
Interested in the forums perspective on REIT ETF’s!