Speaking of world vs US vs SP500, we already had that discussion multiple times, e.g.:
Tl;dr There were periods when ex-US outperformed US. Nobody knows if US will continue outperforming the rest. Some people think it will - like John Bogle; others don’t - like Burton Malkiel. Choose your bet yourself.
This was directly from Vanguards website. Their calculator stops in September however.
You are right, VTI and VOO are very similar in performance (the calculation since inception is a bit scewed since VOO was established in 2010 only), however VT & especially VXUS are not.
Hi Bojack,
Sorry for the confusion, according to google finance VOO outperforms VT
VOO and VTI look identical
VOO performed better than VT:
VTI is more diversified compared to VOO, it does make sense to change VOO for VTI
Can’t understand why people prefer VT.
Good point there 1000000CHF, maybe India and China will have increased economic growth in the next years compared to the US
However, the US has a diversified economy relaying on both foreign investments in the US and US investments in foreign countries
Regards,
Past Performance Is Not Indicative Of Future Results. Especially Long Term. Example: Nikkei.
That’s the point. It’s a bet whether US will continue to outperform long term. Since most of us, are investors for very long term, we prefer to stay on the safe side and diversify the risk of US going into dogs in the distant future. We’re not traders, we don’t switch back and forth between allocations. We’re not chasing performance from one asset class to another bitcoin.
Some days on this forum feel like the plot of the Groundhog’s Day 
Some time ago, I created a thread about that.
You can check it here:
Hi all and thank you for sharing your knowledge.
I would like to ask for help / your opinions on the following situation:
I’ve arrived in Switzerland at about 2 years ago and I’m planning to leave in 18 years (or before if possible). I’m 32 years old.
Currently I’ve my portfolio in my home country, where capital gains are taxed at 28%. Over there we use Acc ETF’s (widely seen as more tax efficient) so we don’t get taxed on the dividends (on our side).
In consequence, my fiscal address is now a Swiss one and in my country, my fiscal status is as “Non Resident”. In this situation, do I need to declare something to the Swiss Authorities? Like which ETF I do own, etc?
Also, I’m wondering about moving a part/most of that portfolio to Switzerland so I can benefit from the capital gains not being taxed. Would you consider that, for an 18 years period?
My intention is to “retire” out of Switzerland.
I’ll be seeing a fiduciary next week, but I would love to have others informed opinions.
Thank You!
Yes, you need to provide an itemized list of all worldwide assets in your possesion, since Switzerland has wealth tax instead of capital gains tax.
Double check if you trigger the capital gains by selling even if you are no longer a resident. Your home country may want to tax you based on where you were when and where the capital gain happened, not when it was realized (sale).
In any case, now that you are in Switzerland I recommend you open an account with IB and not an European broker, so that you can invest in US based ETFs (for cost and tax reasons).
Good morning and thank you for your answer.
I’ve been reading the introduction of this topic again. I thought that I would only be taxed on my “wealth”. I mean, after having declared all the assets in my possession, the Swiss Administration would apply a tax (annually) and that would be all.
But now, and for example I own shares of the IWDA ETF, I think that they will also tax the dividends that the found receive and will automatically reinvest. Am I (unfortunately), right?
If that’s that case, I think I’ll be better off having all my investments transferred to a new account, opened in Switzerland. In fact, my country tax capital gains for non residents at 28% as well. If I leave the assets over there, I’ll be paying taxes on the dividends to the Swiss Administration, and taxes on capital gains to my country. I would say that’s the “worst” of both worlds.
Is, in your opinion, this reasoning correct?
Merci 
Exactly. Swiss have the ICtax database based on which they know how much dividend was paid even if the ETF is Accumulating:
https://www.ictax.admin.ch/extern/en.html#/ratelist
Best to transfer all your wealth here and cut out your home country off anything finance-related.
Thanks a lot for your help / time! Have a great day!
Guys,
If for US stock the best are US domiciled ETFs, and for EU stocks the best are non-US domiciled ETFs, what do you think of using: 50% VTI + 40% XD5E (LU0846194776) + 10% sth in Asia?
Advantages I see:
I am not sure how L1TW and L2TW looks like for Luxemburg domiciled fund made of EU shares, but supposedly better than VXUS, right?
Any suggestions for the Asia part - a distributing, non-US domiciled funds with low TER?
(a beginner here, critics is welcome)
Last time I looked, I couldn’t find significant differences for L1W between US and IE/LU domiciled ETFs holding non-US shares.
(was a while ago, but was trying to compare based on prospectus data, iirc they list L1W there)
So given TER and spread is often lower in US, going for EU domiciled is not necessarily better.
Why buy MSCI EMU instead of VEUR? Same TER and VEUR has more countries. Why skip the rest of the World? No Canada, Australia?
You are right @Bojack, VEUR is better than XD5E.
Is there something like VEUR but even better?
I would like to find VXUS but domiciled outside of the US.
And preferably traded on the US exchange - this would be perfect if only it exists…
My goal would be to hold VTI + VXUS (but not VXUS)
My reasons:
and the fact that you have a Polish tax residency alongside the Swiss one makes it a different story?
It’s more that I don’t want to assume that I will have a Swiss tax residency until retirement. And the rule might also change - I would prefer to be under the limit of US estate tax with out of US investments.
What do you mean, that you would prefer to be under the limit? The limit is 11 million, as long as you’re domiciled in Switzerland. And when you decide to move out, you can sell your VXUS any time, and buy VWRL on the same day.
And owning 60k of US ETF just seems to me like going through too much hassle to make some minimal savings. If you’re not convinced by US ETFs then just buy VWRL.
And most likely you should do that anyway if you leave Switzerland since many countries have capital gain tax so you want to reset the cost basis of your holdings.
That’s not how this works.
Your worldwide assets are counted towards the limit. The tax rate based on worldwide assets is then applied to your US assets. (In other words, it’s pro-rated to just your US assets.)
Holding 60k means you end up with the worst of all worlds: you (or descendants) have to deal with the paperwork for estate tax, on a small amount, and you’d still be giving up the lost withholding on the rest of your US holdings.
