From a Swiss tax investor point of view, the term “portfolio” here is marketing. We have an ETF (charging 0.75% a year for the structuring + its cutting edge AI investment algorithm) invested in other ETF (charging between 0.1% and 0.5% a year I guess). It’s a wrapper and would classify as a fund of funds in Switzerland.
It’s unlikely the Swiss tax authorities will recognize this ETF as a “portfolio”. Have fun trying to do so with a Unitized managed account in the Bahamas.
I didn’t find the information neither and made an assumption in my previous post. More details below.
If detaining all the underlyings in your portfolio and benefiting from the double tax treaty (DTT) between CH and the US, distributions will be taxed at 15%. All can potentially be reimbursed with the DA-1.
If detaining Sanlam ETF, the country of its registration is important (=where the underlyings’ dividends are paid).
Ireland ? DTT can apply and dividends paid to Sanlam will be taxed at 15%. 15% lost for the Swiss investor.
Luxembourg ? No DTT. 30% on dividends. 30% lost for the Swiss investor.
Bahams/South Africa ? No DTT with the US. 30% on dividends. 30% lost for the Swiss investor.
Let’s not forget the double layer of fees 0.75% + the cost of each underlying ETF.
I hope that the ETF is over-performing to compensate it. Difficult to say. They have a home made benchmark for the comparison and their last monthly report doesn’t show the %-tage per holdings.
However, on February 28, 2021, we know they had 37% in cash.
A Swiss investor will invest in a tax inefficient (not speaking about performance here) to basically hold cash at 0.75%/year.