I’m quite new to this forum and I found the wealth of information brilliant. After a lot of reading I’m trying to tax optimize my portfolio and it would be great to get your feedback.
I’m aiming to have a portfolio as close as possible to the VT Vanguard Total World Stock Market (0.08 TER) that is TER/Tax optimized for a Swiss investor while not being overly complicated.
After some research I came up with the following portfolio:
- 50% US Markets (0.03 TER) VTI - Vanguard Total Stock Market - Domicile: USA
- 15% Emerging Markets (0.10 TER) VWO - Vanguard FTSE Emerging Markets - Domicile: USA
- 12% European Union (0.12 TER) CSEMU - iShares Core MSCI EMU UCITS - Domicile: Ireland
- 10% Asia Pacific (0.08 TER) VPL - Vanguard FTSE Pacific - Domicile: USA
- 7% United Kingdom (0.07 TER) ISF - IShares Core FTSE 100 UCITS - Domicile: Ireland
- 6% Switzerland (0.10 TER) CHSPI - iShares Core SPI - Domicile: Switzerland
As you can see the above portfolio covers approximately 95% of the VT. The reason I’m not picking an ETF for MSCI Europe is that it would contain approximately 16% Swiss companies and that wouldn’t be tax optimal. The overall TER of the above portfolio is 0.063 which is even better than 0.08 from the VT ETF.
I’m wondering about three things:
a) What are your general thought about the above portfolio. Is it TER/Tax optimized? What would you change?
b) Are “German ETF’s” domiciled in Ireland tax optimized or should I aim for an DAX ETF based in Germany and split up the EMU ETF?
c) TER/Tax wise, what’s the better choice for emerging markets/asia pacific ETF’s. The above VWO based in the US or ETF’s with a sligthly higher TER (0.15) based in Ireland/Luxembourg?
Looking forward to your input!