I’m new to the community, trying to educate myself to FI in order to spend more time out there in the mountains (and less in the office). I’ve been lurking around a bit and learnt a lot during the pas few weeks.
Straight to the point : I stilll don’t understand the difference between Acc and Div in switzerland. I’ve come to the conclusions that Swiss tax don’t apply to Acc funds, but that it’s not worth the investment since the federal tax office consider most of Acc funds as giving “virtual” dividends, as stated on the ICTAX webpage.
So even though Swiss is supposedly friendly to Acc ETF, it is not more efficient, tax-wise, to choose one, because the chance are that it will, or already is, taxed as a “virtual” Div. Is that it ?
Is that why everyone is so much into vanguard’s ETF (Div, but low TER) instead of Ishares’ ones (Acc, but slightly higher TER) ?
This is not the same since all US-based ETFs are distributing. The problem is with accumulating ETFs since the tax authorities cannot reliably estimate the dividend amounts. The fund provider has to do it.