How do you folks sort out the WHT for those non-US-domiciled (i.e. IE/LU) ETFs in the tax filing?
I suppose all underlyings have their own rates (due to different countries), so is it complicated or same as with US-dom (absolute amounts end up in DA-1)?
You donât. There is no way to do that.
Finpension is doing something with US dividends (I think it was just for US) in ex-US domiciled. But I donât know if they are successful and tax offices accept that?
I wouldnt count on it working in the future.
Also US domiciled ex-US funds arenât better tax-wise for ex-US stocks if you get DA-1. They lose taxes on lvl1 that are unrecoverable for us.
US residens can get foreign tax credits.
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IE UCITS ETFs are not DA 1 relevant as there is no WHT at fund level and hence nothing to claim back.
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I would say that they are clearly worse tax-wise as 15% of the dividends go to the US for no reason.
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Certainly from a state side perspective. Less taxes for Switzerland and more for uncle Sam. And especially during these times, less taxes for the US is probably preferableâŠ
Not for you as an individual though (if you get full DA-1)
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UBS has dropped the TER of its MSCI World ETF from 0.10% to 0.06%.
I think that makes it by far the cheapest option for a UCITS ETF and one of the cheapest world wide!
When it comes to index tracking difference it seems fairly low(if you ignore the 1% in its first year): UBS ETF (IE) MSCI World UCITS ETF (USD) A-dis (IE00B7KQ7B66) - ETF Tracking Differences and Performance
SPDR tracking diff is even lower though: SPDR MSCI World UCITS ETF (IE00BFY0GT14) - ETF Tracking Differences and Performance
Not sure about the reasons behind it. Perhaps the AUM and/or the much higher TER in the previous years. (I think the UBS one had 0.30% TER acouple of years ago)
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You need to account for following
- a need for EM ETF
- Reinvestment of dividends and fx related to it
But I think even with that WRDUSY + EM will be cheapest for CHF investors. In fact that is what I use as my world ETF strategy now.
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Sure if you want it. The index that it tracks doesnât include EM though.
An Acc version exists: isin=IE00BD4TXV59
Indeed.
That one is only traded in USD though. Only useful for IBKR but for SWQ/Saxo not so much.
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Correct.
Applying 0.95%(SQ FX fee) to dividends will add something like 0.016% total cost. Still, far less than the competition.
Some people just like receiving dividends anyway (not me 
)
Moreover, combining it with e.g. XMME for EM if you are into this, you get a combined TER of ~0.07%
Avantis Global Small Cap Value UCITS ETF is now also listed on SIX (only in USD so far) with the ticker AVSV. For some reason, they created a separate share class for this listing even though I donât see any difference between the two share classes (same TER, both accumulating, no hedging). Does anyone have a clue why they would do this?
https://www.avantisinvestors.com/ucitsetf/ad-hoc-announcements/swiss-six-listing-announcement/
Not sure. But Iâve seen these things before like with VWRL share classes here https://fund-docs.vanguard.com/FTSE_All-World_UCITS_ETF_USD_Distributing_9505_EU_INT_UK_EN.pdf
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The listings on the linked factsheet are all for the same share class (same ISIN).
The Vanguard FTSE All-World ETF does have two share classes. However, they really are different as they are âUSD Accumulatingâ and âUSD Distributingâ.
Iâm failing to find a significant difference between the two Avantis Global SCV share classes. Both share classes are registered in Switzerland, i.e., it doesnât seem like they canât offer the previous share class in Switzerland. The new share class is registered only in Switzerland, though.
This may have something to do with it? (from Avantis Global Small Cap Value UCITS ETF)
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I have just noticed that WEBG is now also traded in CHF at EBS. To me this makes it very attractive as a VT alternative that incurs low fees and is distributing.
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I see. This seems to be new. It was not the case before.
Have you been able to buy it? Wondering if itâs liquid at all
You can check here: Amundi Prime All Country World UCITS ETF Dist ETF Price & Performance - WEBG | SIX You see the volume for each day in the chart. The average volume since the listing about a month ago is 3â740, which is about CHF 39k, so itâs being traded but not much.
As itâs an official ETF listing, liquidity should never really be an issue during trading hours, but itâs possible that the spread is (sometimes) larger than with other funds or other exchanges.
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Both USD and CHF have lowish volumes on SIX, but marker makers are setting a 0.1% spread.
(Other downside is that you canât use them as collateral for margin)
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Why buying in CHF? You might lose just the Fx in buying and selling it, but then dividends are still in USD.
Because you save 0.25% (buy) and 0.25% (sell) on the currency conversion on Degiro (e.g.).
Also, your broker could increase the FX cost, and by holding it in CHF you protect yourself from that.
Did someone manage to buy WEBG-CHF in Degiro? I started seeing this ETF only very recently, but there is no price, no info in general in the app.