Thanks for pointing that out. I had a wrong understanding of how fictional dividend distributions and taxable value at the end of the fiscal year interracted (that is, I thought there was an interraction while there is none).
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Depending on the perspectiveÂč, you could call it a loan, yes. However, whatever you call it, it results in reducing the expected DA-1 delay loss from e.g. 7% to roughly the risk-free rate of currently 1% without any downsides, as far as I can tell.
Hence, I would say it does affect your calculation. In my opinion, it means that (at least in ZH) there is no point in calculating a 7% p.a. loss for DA-1 as it can easily be avoided for the most part.
Âč I might argue that itâs unfair practice of the tax office and they should credit both Swiss withholding and DA-1 to the tax bill with a value date of either end of September or end of December of the tax year. With the low interest rates here, the difference is typically not all that significant, though.
No, thatâs not the same. You can do that, of course, but that would be investing with a (small) leverage which comes with additional risk while my method doesnât add any risk (as long as the estimate is not higher than the actual DA-1 credit).
The amount may be small enough that you donât mind the tiny leverage and the additional small risk but conceptually itâs quite different from my method with regards to investment risk.
Sometime back I checked WEBG was not in Ictax. Most likely because itâs a new ETF and would need to report its numbers to Ictax at end of their financial year (which is December)
I guess same is true for WEBN.
justetf.com has a field that describes it (I think)
Tax Status
Switzerland No ESTV Reporting
But this ETF was started this year, so there was nothing to declare so far. There are many reports (actually from @Abs_max ) that funds were included to ictax after a simple request.
Yeah.
I guess I should ask Ictax team about adding WEBG because I actually own it.
This one should be easier because it distributes dividends anyways.
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Update
ICTAX told me that WEBG is now registered for 2024 course list.
However since there is no info received yet, no data can be published
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Good to know. I guess that if they have added WEBG, then WEBN which is the same but reinvesting should be covered too right?
I mean, what they want to know, which is dividends generated, is the same value for both. If not, Iâll ask them to include the brother etf.
Yes they most likely will add it because I think WEBG & WEBN are part of Amundi ICAV annual report which comprises all of the ETFs from Amundi domiciled in Ireland.
Just FYI -: WEBN was launched in June i.e. different point of time vs WEBG. So maybe they are two different ETFs. It should not matter but thought to let you know.
Hello,
I have a question that may seem basic or obvious to you, but could someone point me to a reference site or a way of finding out in which currency ETF dividends are paid?
Specifically, my question is whether WEBG SW (SIX Swiss Exchange) and WEBG GY (XETRA) dividends are paid in USD or whether WEBG GY (XETRA) dividends are paid in EUR.
My research has been in vain so far, as all the sites Iâve found indicate that WEBG has not yet paid any dividends.
Thank you in advance for any replies.
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Most world ETFs pay dividends in USD because dividends are paid in base currency of fund. Atleast itâs true for following.
WEBG
VWRL
VEVE
It doesnât matter which exchange you buy the ETF because ISIN is same
P.S -: best place to find this info would be in fact sheets. Look for share class currency
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You can look this up on justetf.com, under the section âBasicsâ they list fund currency and, under âstock exchangeâ, the trade currencies.
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What do you do if a new ETF (covering the same index) becomes available with lower TER?
Example portfolio:
- IWDA: 0.20% TER (88% share)
- EIMI: 0.18% TER (12% share)
Options:
- Do nothing
- Sell both and buy SPYY (0.12% TER)
- Sell only IWDA and buy SWRD (0.12% TER)
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I normally start ânewâ contributions to NEW ETF and keep the older ones. The reason is that there would always be a cheaper ETF
Maybe after 3-5 years , I would revisit the situation to see if I should move old positions as well to new ETF.
As we donât have cap gains taxes, Iâd sell all and switch to the new one. Just keep thoses changes to every couple years and keep in mind spread + sell/buy fees. As if you change too often, you pay more in fees, than you save.
Also not changing right away, and waiting until the new etf has built up enough aum and liquidity (not the case here, both are high for spyy).
Iâd sell all and buy SPYY if I were you. Also has the benefit of a 1 fund solution, which helps psychologically.
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By the way depending on which broker you use, WEBG can also be interesting equivalent to SPYY.
See following post for list
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I have a similar problem. I think the best would be:
- Calculate how much you will lose annually in fees due to the higher TER.
- Calculate how much you will lose onetime in fees due to selling and buying.
Then decide for yourself whether a change is worthwhile. (So far Iâve been too lazy to do that, which is why I just pay into a new one and leave the old one lying around.)
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I made the calculation and it pays out quickly.
I bought those ETF (in EUR) on Degiro back then. My biggest concern are the FX fees (0.25%), beside the spread and transaction cost.
I see three options:
- Sell and buy the new one in EUR as well (no FX fees)
- Sell, exchange to CHF (at whopping 0.25%) and buy in CHF (no worries in the future about FX)
- Transfer to IB, sell and exchange to CHF, wire the money back and buy in CHF
Iâd do this, if the amount is significant. Depends also on how much transfering costs at Degiro.
But why wire money back and not just stay on IB?
As this:
Would create fx fees any time you buy in teh future and selling.
SPYY is sold under ticker SPDR ACWI on SIX which is traded in CHF & Sold under Ticker SPYY and traded in Euro at XETRA.
So letâs say IWDA sales will result in Euros. You can buy SPYY in Euros as well. Why do you need to exchange anything?
And for new purchases , you can simply use CHF.
Yes, thatâs a viable option. However, some time (in the far future) I have to convert it to CHF, because itâs my base currency.
For new purchases I can use CHF with the only disadvantage to have the same ETF at two different stock exchanges.