I came to Switzerland 2 years ago and was already invested in IWDA Acc (Total world accumulating ETF) as accumulating ETFs are better for tax purposes in my country.
In Switzerland however, as I understand it, you pay the dividend tax whether it is accumulating or distributing ETF.
Because of this, seems like a distributing ETF would make more sense - it is easier to find out how much dividend I got vs. from an accumulating ETF (is this true? how hard is it to find out at IBKR?)
So if I want a distributing ETF based on SP 500 - is it best to buy one in USD or CHF? Would I be paying something extra on fees as CHF are probably hedged?
Dividends for distributing ETFs is reported very clearly on IBKR. No problem.
For accumulating, it’s not reported on IBKR. However you can check taxable incomes for accumulating ETFs (for Swiss residents) on ICTAX Ictax
Technically speaking , you can continue to buy IWDA in Switzerland too and you can find the “theoretical dividend income” on ICTax. But now you also will have access to VT.
The main reason can be topic of US estate taxes. Switzerland is privileged with higher exemption limits, so for Swiss residents it’s less of an issue. But still something to be aware of.
A lot of discussion at link below. Please read the entire post with all responses because it is a nuanced topic.
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