Tax optimisation for ETF investing

Disagree on your general rule for US stocks funds.
Distributing is better than accumulating - AGREE
Domicile IE > LU > US - DISAGREE

No matter what, on US stocks the IRS takes 15% withholding tax on dividends. If your fund is domiciled elsewhere, it’s the fund itself that’s been taxed so you have no way to get that 15% back. You’re going to be taxed again in Switzerland (withhold 35-39%).

If your fund is US domiciled you can reclaim that 15% US withhold on dividends using the form DA-1, then pay your swiss withholding.

US domiciled funds with distributing policy let you save that 15% on dividends. Now, what’s the impact of this? The S&P500 dividend yeld is ~2%. 15% of 2% is 0.3%. US funds let you save that 0.3% of double taxation.

Be careful though, with holding a US domiciled fund your heirs may incur in US estate tax, but only if your wealth is big enough.

Having said all that, what do I own? An IE domiciled, accumulating S&P500 fund -.-’’ that’s because I invested before doing this research and I’m scared of changing and paying transaction fees.

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