Us vs ucits etfs

Investing / Portfolios
1

Hi guys

I will start to build up my etf portfolio beginning january 2020 with roughly 3k monthly payments.

I already have some us assets (around 40k) on IB and am wondering if I should start purchasing US based etfs (combo of VTI + VXUS) or better go with a combo of vanguard ucits sp500 VUSA and some other ucits etfs (covering world ex us) because of the inheritance tax that might apply after passing 60k ?

I would prefer a combo of vti + vxus over the ireland based etfs because of the liquidity / low ters and the dividend tax.

What would you guys recommend to do ?

Are there similar funds to vti vxus not based in the that are distributing and have acceptable ters ?

Another question I have:

Lets say i buy the vusa sp500 ucits etf. The etf is held in usd. In which currency and at what exchange would you buy it if you are a swiss resident ? At the swiss exchange in chf or rather at lse in usd ? Shouldnt make a big difference no ?

1 Like
2

See Are US ETFs worth the (estate tax) troubles?

1 Like
3

“Some other”?
Are there any (UCITS) ETFs covering “world ex-US” at all?

Plenty. I would consider VWRL or VUSA’s (or SWDA’s) TER more than just “acceptable”.

It won’t be a “big” difference either way. Also, the question is pointless as long as you are paying 10 USD monthly minimum commissions / inactivity fee to IBKR.

But even in absence of minimum commission, the question borders on overanalysing IMO. Firstly, it’s a one time cost. Secondly, you might rather spend that time and effort on saving or earning a mere 10 CHF a month anywhere else. Transaction costs for buying and holding for Vanguard at IBKR can’t be optimised down much further, as they already very inexpensive. Other areas in your life should have a much higher potential for financial gain/returns.

3 Likes