Tax optimisation for ETF investing

[Dr.PI]

@tacoma

Interestingly enough, if I do count those 15% tax on 2% of the dividend i get 0.03% disadvantage - ironically almost the same as the 0.028% advantage we get from L1 tax and TER difference.

If you can’t get 15% level 2 withholding tax on VT distribution back, you are coming to almost the same expenses as with VWRL:

Splitting the world

I was thinking about updating this post, but decided not to. Too many variables that affect total investment costs. Instead I decided to outline what I think is a right way to calculate the total investment costs for an ETF. As a Swiss investor, one is only taxed on dividends, and namely up to 3 times. Let’s consider the whole process. All companies included in a fund are paying out dividends, which all together make gross dividend yield (in %) D_G. The gross dividend yield of various baskets …

If your portfolio is large enough, it makes sense then to split it to Developed Markets/ Emerging Markets ETFs to save on TER.