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Watching from the sidelines. Indeed an interesting ETF. Still undecided between supporting a European provider (looking at you XALL) or going for a single-fund ETF with close to full diversification. For that, though, I’d want it to be tradable in CHF at SIX. Not sure whether that is going to happen, since it’s already listed in USD…
Cortana wrote them an email. I‘m sure, Cortana will share the reply.
Why not buying both with two different brokers? The depository of XALL is State Steet. I would go with another ETF provider, in case you want to diversify the depository as well.
For those interested in this VALL etf, do you just accept the loss of the withheld tax on dividends and see it as a compromise or tradeoff for not having to care (as much) about inheritance & irs, and to support EU finance companies? Or is there more to it and it’s actually financially interesting vs VT?
I feel it’s all been said here and I’m looping a bit, but I struggle to understand the enthusiasm given it’s a physical replication. My understanding of the thread is that swap would work better financially, but that this adds a level of complexity and probably hallucinated risk that scares some people (me included).
(sorry if this is redundant, I’m not working in finance and have limited understanding)
Yes - the real tax loss is very minuscule and if you have a mortgage for example, you don’t even get back money in certain circumstances.
My wife for example isn’t made for this - I handle the money and I’m happy that she listens to what I tell her in this regard. I can’t bring it over myself to let her handle US tax law, even with a consultant, because I wanted to save a few bucks.
Sure, taxes suck, but to put it into perspective, we also don’t really know what other benefits an Ireland tax residency gives us.
For someone who gets da-1 back entirely and who doesn’t care about estate tax issues, VT is still cheaper.
But if your tax rate is below 15% (might happen when retired), or you care about estate filing then it’s a good option (and it costs like 15%*60% (weight of US) * 1% (dividend yield) which is ~10bps, still reasonable and same order as synthetic ETF tracking error)
Yes ? ![]()
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I am waiting for distributing and eventually chf version of this etf. Then I will switch.
My wife has no idea about finance. For my peace of mind, I will lose the DA-1 reimbursement, yes.
There is only really an advantage if you get back most of your DA-1.
I think for quite a lot of people after tax it‘s even a wash. Of course for high earners with a high average tax rate and not many deductions, that get full DA-1 it‘s still about a ~0.1% cost advantage.
And for any permit B holders that don‘t already do a tax declaratiob VALL straight up better.
But most other metrics are better with VALL, it‘s just safer and more hassle free.
I personally would probably still tend to hold VT, but I‘m a hard core min-maxer. But even I‘d be on the fence.
US etfs now only really make sense for sepcialty products you cannot get in ucits, or are inefficient in ucits.
I’m also quite confused with the different ticker and listings.
Do you know how it works in practice? Can you start buying in Xetra in euros, and then if it gets listed in SIX in CHF, can you continue buying the ETF in CHF? Or would they appear as two different positions in your broker portfolio?
And same, if you buy it with the listing in USD, can you sell it in EUR?
Here is the infos.
https://www.bankeronwheels.com/vanguard-launches-ftse-global-all-cap-ucits-etf-at-0-07/
I guess you would have 2 positions in each currency.
I am seeing so many posts about this ETF on Reddit. I am starting to think they are all promotional content
Reddit has been a VT echo chamber for years. And now the same ETF from the same issuer is available as UCTS. It doesn’t surprise me that Reddit is full of it.
In this case you would end up with different positions in your portfolio for the same ETF. If you buy it in once currency, you sell it in the same currency.
it’s just the best all rounder UCITS ETF, pure VT European alternative.
I think it would it make sense to focus the discussion of VGLA / VALL in this new thread:
Debatable… VALL is in the end THE END of VT for europeans ![]()
I see the value of this thread to discuss the topic of US dependency on a higher level. For new members who would like to participate in the discussion of VALL I think this thread is confusing since it covers so many other topics related to US dependency.
I think VALL is solving mostly all of the other topics related to US dependency?
We still lack a lot of the fancier leveraged stuff like the return stacked, MFs etc (I think), and of course Charlie Cotton Schwabie should make us a UCITS SCHD ![]()
There is definitely a lack of those, especially etfs. There are some coming though afaik. MAN registered a new etf which name suggest a stacked stocks + managed futures etf.
Then there is the Winton trend enhanced mutual fund that is msci world + managed futures.
Mutual fund offering is quite good already in the MF space. Not so much for etfs.