🔴Learn more about Interactive Brokers: www.interactivebrokers.com/mkt/?src=zietPY2&url=%2Fen%2Fwhyib%2Foverview.php%3Fnored%3Dt By just clicking the above link, you will be able to support my channel without any cost to you! Thank you so much! Note: 1. For Nasdaq-100 Index, there is a new alternative to QQQ that is QQQM (Listed on LSE, expense ratio of 0.15% p.a., traded in USD, but with significantly lower liquidity) - you might want to check this out if you are considering QQQ: www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-QQQM
Hi, FTSE all world index , is actively managed etf? , or else it's like passive one like s&p 500 , If it's passive , who created this index and belongs to which country ? If it is actively managed etf , then each company which offers this etf , will differ on the top holdings right
@@prabagaran.s1285 The ETFs tracking it are passive in nature, so you should refer to the manager of the ETFs tracking the index instead, which can be provided by MSCI etc. To answer your question, FTSE Russell is the guys running the index behind it.
Words cannot fully express my gratitude, sir! I want to let you know that your videos greatly helped me decide where to invest. Thank you so much for sharing these with us! 🙏🙏
Not just 2 ETFs but 10 ETFs compressed into one single short video! We use the word "Power!" to describe such a feat. :) One Q: Out of these 5 groups, if you have US$5K to spare, which would you go for & why?
Yayyyy thank you - all motivated by Power viewers like you! Re your question, I would go for CSPX / QQQ, higher concentration means higher risk means higher reward, something I can afford since I am still young and have the privilege of time to let my money compound over the next few decades 😊 VWRA works too but a little bit too diversified for my risk appetite (note that I hold ~50% of TSLA in my stock portfolio, that just sums up my risk appetite haha)
if there is ticker cnx1 for UK in gbp and ticker cndx in USD that means that I have to purchase GBP version for me or it does not matter on long term as both listed on LSE ? I am based in UK
Hi Chris, refer to its fact sheet to see if they are tracking the same thing, if yes, then the difference should be just currency preference moving forward (keep in mind that you will also be bearing currency risk one way or another when you invest in the long term). Performance wise, they should be identical, its just the appreciation/depreciation of the trading currency.
They should be of the same fund, but have multiple listings in Swiss and London Stock Exchange, denominated in GBP and USD. Also, sometimes the fact sheet may be quoting different date so you might see some different numbers there. Hope this clarifies!
Hi Jeremy, they are more or less the same, with some differences in their holding weightage and focus in a few countries, such as India/China etc.. Can read them on reddit to get a better idea: www.reddit.com/r/singaporefi/comments/l16mqk/isac_ishares_msci_acwi_ucits_etf_usd_acc/?context=3 Also, you can look up their fact sheet and see their holding assets - see how they allocate them!
Does it matter between "İshares core MSCİ emerging" and "Vanguard FTSE Emerging"? Have looked that inner is almost the same. OOk with country distribution. I have noticed that with "Vanguard emerging", for example, no south korea "samsung" share is included.Maybe that's a small difference? kwa quality and return will it not be difference I assume? Thank you so much.
Yeah actually its detailed on the fact sheet - the different is very minute, some funds like to do it this way while another do it another way - its more or less the same if you ask me (in the big picture)
Sorry if this is a dumb question but does ROI and net yield the same? I am referring to the Nasdaq 100 index part of the video. If the Net yield for QQQ is 0.136%, why does the table shows 20+%?
Hi there, they are 2 different thing. Net yield here (or yield) usually refers to Dividend Yield - expense ratio. Means the net dividend you are getting after the expense ratio. ROI stands for Return on Investment - usually refers to your total return on your invested capital. For example you invested USD 10,000 and at the end of the year your investment value stands at USD 11,000, then your ROI is (11,000-10,000)/10,000 = 10%. (the high return you see on QQQ) Can read more on IRR or ROI on investopedia 😊 Hope this helps!
Thanks for that what do you think about semiconductor ETF`s I think there is only one in UK called Vaneck vectors semiconductors ticker SMH in UK SMH GB what do you think about that one listed in USA was success what do you think about UK version or EU version ?
Important question. Hi Ziet, you said that you prioritize accumulating fund -- is that is the case then the U.S. 30% dividend withholding tax is no longer relevant. Why not then we pick a U.S domiciled S&P 500 ETF (Accumulating) that is traded on NYSE/Nasdaq rather than Ireland-domiciled? -- am i missing something? Thanks Ziet
Hi beni, good question, thats because there's no accumulating ETFs in the US, by law they are all required to distribute their dividends hence they are all Distributing ETFs in the US
@@ZietInvests Ah okay, now that brings us to the 2nd more important question. When can we tell the distributing U.S domiciled S&P 500 ETF - that we want out dividend to be re-invested (i.e DRIP) into the fund, i.e. do they give us the option during registration? Or do you know any US fund that's offering it? Coz i'm thinking to do it via Rakuten. Thank you sir!
Hello Ziet, thank you for your super nice video. I am facing problem regarding tickers. For example, in interactivebrokers I am seeing QQQ shows me that it is invesco QQQ TRUST SERIES 1 while QQQM is showing me that it INVESCO NASDAQ 100 ETF. I am confused. Which one should I buy? I am interested to buy ETF. Thank you for your help.
Hi Ziet, how and where to find the EXPENSE RATIO of ETF in those website like Yahoofinance, investing etc? try to search high and lows. please advice. thanks
Hi there, Yahoo Finance show it under "Profile" > Annual Report Expense Ratio - finance.yahoo.com/quote/VOO/profile?p=VOO Else, you can refer the description in this video to go to the ETFs' website, they should have it there.
Does it make sense to invest in an syp500 etf such as Cspx and at the same time invest in several sectorized etfs? (Tech, health, energy, financie, etc)
@@ZietInvests yes. I thought maybe it would be kind of redundant to jump into many sectorized etfs. At the moment I Am invested in cspx, iuit and iufs. But I was thinking about investing in energy and health care syp500 etfs as well. Thanks a lot
Hi Zeit, I really like your videos and find your insights very useful. Could you do a review on SPEQ. I understand that it's an equal index fund for S&P 500.
Hi Ziet, I am sure this is a very newbie question to ask but I just registered an account with IBKR. I searched for CSPX and there were three selections, CSPX, CSPXN and CJPXJ. What are the difference between them? Which one should I choose if I want to invest in the one that you mentioned in your video? Thanks
Hi Boon Loo, they could be CSPX listed on other exchange such as Mexico/Swiss Exchange etc. The one mentioned in this video is listed on LSE (London Stock Exchange) yeah, should be denominated in USD If in doubt, can always tally the share price number on google, i.e. USD 487.33/share
Hi Ziet, Thanks for your great works and sharing passionately. I love to watch your video and learn a lot too. I would like to suggest that you can do a HK listed ETFs review. especially those with Tech stocks (both software and hardware) ETFs. Keep up the good works! Cheers!
Hi there, thank you so much for your heartwarming content. Noted on your request on HK ETFs but I am currently not really into these market yet - maybe sometime in the future 😁
@@ZietInvests Thanks...appreciate your fast reply. I think HK ETF and those tech related could be under the radar of many retail investors....waiting for the regulatory storms to be over soon.
@@rndchan1405 Yeah I know that because I've been receive lots of message about them too, the thing is the political uncertainty remains there even though the valuation looks attractive - its still a risky play considering the CCP is pretty much unpredictable haha!
Thank you for the video, it's so informative that i keep revisiting it once in a while (that means i haven't make up my mind which one to buy since Ringgit is so weak, have to think twice before investing haha)
Hehe glad you liked it so much Leanna! I do visit back sometimes too to refresh my knowledge xD I guess thats what a piece of (hopefully) good research does!! Investing is an open-ended game, our preference will always change from time to time so don't worry about it too much😄
VUSA is great too, but GBP and Distributing trait is not my personal preference. I did list it as one of the options for those whom prefer GBP and Distributing trait. (Many of my viewers are new to the US market so most of them are trading with USD, so GBP may not be the most appealing option). Can refer this video: ruclips.net/video/VIM1fczQdAE/видео.html
Hey Ziet! I just found out about IE-domiciled ETFs thanks to your video. I'm a bit confused on the naming convention. Are all UCITS ETFs IE-domiciled? If not, how do I check which country it is domiciled in? Most of the prospectus I looked at don't mention which country, but just Europe in general, which is a bit confusing for me. Are EU-domiciled and IE-domiciled the same thing?
Hi Sean, not all ETFs have UCITS certification ya, and that is not just applicable to Ireland domiciled ETFs. You can refer this video guide on how to read ETF factsheet, there you should be able to identify where the ETF is domiciled in: ruclips.net/video/Xc6OghOqwdU/видео.html They should say where they are domiciled for tax purpose, else check their respective website (blackrock, vanguard etc.), should have! Hope this helps!
Hey Ziet, what would the difference be for the same ETF which are listed in diff countries. For example, for EIMI,you’d have EIMI.L / EIMI.MI among the choices to choose from. Other than the currency difference in which these etfs are denominated, are there any other differences in long term holding risk /performance, liquidity concerns? Although it is both provided by Ishares.
Hi Sherwin, on top of the currency risk, if the fund is domiciled on different country, then investors investing in it will be subjected to the country's taxation. Liquidity is definitely different for different listing exchange - which may affect the trading spread as well.
Hi Ziet, is SWRD a good etf? It invests in developed countries medium and big caps and is Irish domiciled. Kinda regret after buying it as it still can’t beat cspx. Seldom go up in term of numbers.
Hi David, I guess you already answered the question yourself - your Good/Bad is benchmarked against the S&P 500, so why not S&P 500 instead haha! Whether it is good/bad is hard to answer since developed countries are unpredictable and susceptible to many political risks before they can even come close to developed nations - until then, it would most likely underperform S&P500. Hope this helps!
good video - been deciding between QQQ and CNDX - CNDX unfortunately isnt on IBKR LSE but on SIX higher fees. tho still worried about the estate tax for US-domiciled .
Hi Atlas, that is correct, I have no idea why CNDX (USD LSE version) is not on IBKR, maybe its a hint for us to go for QQQ instead hahaha! If you are worried about US estate tax, then you can take a look at EQQQ listed on LSE (traded with GBP, distributing), its also by Invesco: etf.invesco.com/sites/default/files/documents/IVZ_EQQQ_FACTSHEET_RETAIL_EN.pdf
@@ZietInvests Awesome video as always? Can we go with CSNDX instead(listed on IBKR). It trades on Swiss exchange but is Irish domiciled. Should that matter?
Hmm i don't think Market order would help either, if anything it will just assign you to the closes Ask price (which could be worse for you). I think the premium is just something that is bound to happen for non-liquid ETFs/stocks such as the Irish funds
Dats true, in theory both depends on the buy/sell prices available but based on my previous buys, i got the best price when i bought with market price rather than setting buy limit. But in da end its juz like sifu ziet says, low liquidity=high probability of higher buy prices than market
Hi, Return mentioned above in Minutes 3.36, if is after dividend distribution for VOO and before dividend distribution for CSPX, then then return is no diff alto 30% vs 15% WTH tax? thanks
Hi Kian Kay, if im not mistaken, the return mentioned should include capital growth and dividends distributed, so the final return between both of them should be roughly the same. The difference is when it reaches your hand as a non-US resident, for which you will be subjected to the dividend WHT
Hi Ziet, I've got a quick question on the US estate tax. Will it trigger if my total investment is more than 60k but individual investment is less than 60k? For example if I have 50k in VOO, and 50K in QQQ.
Hi Brian, I might not be the best person to answer that, but if I'm not mistaken, it's applicable to your gross asset in the US, can read further here: www.irs.gov/businesses/small-businesses-self-employed/estate-tax Investopedia: www.investopedia.com/estate-tax-exemption-2021-definition-5114715 This is a grey area to me as well because it is hard to get hold of someone that is familiar with this matter, so I can only rely on my online findings.
Good day sir, may I ask if US Withholding tax is applicable for buying US treasury bonds (asset allocation) as Malaysian? What is your view regarding VTI ? Thanks
Hi, withholding tax is applicable for all dividends paid by US domiciled assets (regardless of stock, ETFs). VTI is a great ETF but the reason why I didn't cover it is because it is a US domiciled ETF (there's no ireland counterpart) which means more dividend withholding tax losses + US estate tax
@@ZietInvests Many thanks. Do you plan to include any bonds into your portfolio? I have heard comments regarding EPF serves like bonds in balancing the volatility in our portfolio so we don’t need bonds. What do you think?
@@hsl1652 Not for this moment as I'm relatively young at 26, so I'm taking more risks, bonds are usually more geared for wealth preservation rather than growth. Not sure about EPF, I never bothered about their asset allocation since it was meant for retirement, and I aim to retire without the need to rely on retirement account
Hi Wei Lim, usually just the fee difference. Also they can all be denominated in different base trading currency, and have different liquidity as LSE is larger
@@ZietInvests Thanks for answering Ziet! I ask this question is because I'm interested in the EXCS ETF but the one in LSE is denominated in GBP and the trading volume is extremely low. Saw that the same etf under another ticker EXCH was available under EBS in USD with better volume so thought of trying it out.
What are some higher returns etf that are Ireland domiciled etf? I was thinking qqqm and cspx to make my entire simple portfolio but it overlaps 40% what would you recommend?
Hi Gaius, while QQQM and CSPX are popular ETFs, the 40% overlap can limit diversification (if that's your intention). Here are a few suggestions for Ireland-domiciled ETFs with potential for higher returns: - IWDG: iShares MSCI World Quality Dividend UCITS ETF focuses on high-quality dividend-paying companies globally. - EMQQ: EMQQ Emerging Markets Internet & Ecommerce UCITS ETF provides exposure to emerging market companies in the internet and e-commerce sectors. - IWDA: iShares Core MSCI World UCITS ETF tracks the performance of large and mid-cap stocks across developed markets globally. - EIMI: iShares Core MSCI EM IMI UCITS ETF offers broad exposure to emerging market equities, including small-cap stocks. Hope this helps!
Hey, thank you for the content! It helped me a lot with my research. I've one question tho: if the accumulating ETFs reinvest the dividends, why its performance is generally lower than the US counterparts ? Thanks!
Hi there! I find your channel one of the most valuable ETF channels. I wanted to thank you for your contributions and ask you: -What ETFs would be the best for Argentinians residents? It will mean a lot since I've been cracking my head so much on this matter. Thank you!
Hi Ziet! Thank you for the amazing content as usual! I am planning to DCA into CSPX but do you realised of the Deemed Disposal every 8 years at a rate of 41%? I appreciate your reply and could you please share with us that if this is going to affect us as Malaysian to pay for this high tax if we happen to sell off the ETFs ? Thank you!
Hi Joanne, I am aware of that, in fact it got me worried for a good few weeks before I found out about this from boglehead's article: "Ireland applies no taxes of any kind on non-Irish residents who hold Ireland domiciled ETFs. Ireland domiciled ETFs are therefore completely 'tax transparent' to investors, making them preferable to US domiciled ETFs for investors in any country with poor or no US tax treaty coverage, and often acceptable to investors even in countries with good US tax treaty coverage." Source: www.bogleheads.org/wiki/Nonresident_alien_investors_and_Ireland_domiciled_ETFs#No_Irish_taxes_of_any_kind_for_Ireland_domiciled_ETFs More from forum: www.bogleheads.org/forum/viewtopic.php?t=251843 I could be wrong, but this is also something that I would love to have further clarity on
10 years is too short to tell long term performance, especially when US stock market seems to have very high CAPE ratio. Thats why I hold a lot more VXUS than VWRA, maybe should hold some IEMG or EMXC also.
You have a good point, the reason why I took up to 10 years is because I don't want to bore everyone with too many numbers as this was meant to serve as a "trailer" for viewers to search up the relevant fact sheet so they can decide for themselves 😂 plus the market moves pretty fast nowadays VXUS - This was initially part of the consideration for my video but I didn't want to stack up too many worldwide ETF (VWRA, ACWI, VXUS) even though I really wanted to put VXUS in, but I ultimately dropped it among the 3 due to it being US domiciled (1+% dividend yield and US estate tax in mind), hence I went for its cousin instead. That in mind, I actually searched really hard for the substitute for VXUS but no luck 😂 (did i miss anything?). I certainly would love to cover VXUS in my future video, just need to find a relevant theme to do it. EXMC - interesting, didn't come across this during my research, thanks for the suggestion!
What about VT(Vanguard Total World Stock ETF)? Covering 9000+ stocks and expense ratio of only 0.08%.Isn't it covering the same thing as VWRA? Currently holding quite some amount of VT in my portfolio.
Almost the same but VT is a US domiciled ETF, hence you will lose in terms of dividend WHT and US estate tax is also applicable. VWRA is Irish fund so for most of us, there's more dividend savings there.
Sorry to re-open an old video/thread, Ziet, but are you aware of any ETFs that track the FTSE global all-cap index (large, mid and small cap companies in both emerging and developed markets)? There is a Vanguard index fund that does so, but it appears that it is only available to UK investors (and is denominated in GBP)
Hi christopher, as far as i know, few funds track the FTSE Global All Cap Index (can check on justetf.com to look for the alternatives). An alternative could be a mix of ETFs that cover large, mid, and small-cap companies across developed and emerging markets!
Hi Randy, thank you for the kind words. I have that idea in mind but the main challenge with this is - this is highly highly dependent on individual risk appetite and investment goal so its a touch one to crack, let me think about how I can structure this into a proper video 😊
@@ZietInvests Thanks for your reply and the great content. What about conservative/ balanced/ aggressive? or something like that. I just noticed that there's not a lot of non US resident information, especially for the younger generation that's just starting out.
@@randytaylor4439 Yeah definitely something worth pondering on, might need more research so that I can come out with something 😊 Definitely I will have more content on ETFs for sure!
Is it better to accumulate a lump sum amount before investing in a particular ETF to prevent loss on forex and trading fee. Like invest a lump sum of RM12000 when i accumulate it, rather than RM1000 per month. Need your opinion 😀
Yup that works too, the more you convert/transfer once, the less forex/conversion losses you incur. Depending on your income, some people don't mind investing once every 2-3 months, so its really subjective to your investment objective haha!
Ziet, thanks so much for another great video! Just a question, is QQQM a good alternative for QQQ ETF since it tracks the same Nasdaq-100 and with a slightly lower expense ratio.
Hi Heidi, they are almost identical, with QQQM being super new hence their liquidity is very very low. With lower liquidity you might find yourself paying a premium to your trading price, or selling at a loss, explained here: ruclips.net/video/Xc6OghOqwdU/видео.html For example if you queue at USD 151/share, you could be matched at USD 153/share.
Hey there, I don't have any Irish dividend REITS at the top of my head now, but could be something worth exploring down the road! Will keep you guys updated with it when its up!
That 40% is applicable upon demise, on your gross US asset above USD 60,000 (exempted), so if you have 100,000 invested, I believe the 40% is applicable to the USD 40,000. Best to confirm with with a tax advisor!
Hey! Thanks for the content, great video! Does anybody know if with accumulating etfs do you still realize gains everytime the etf itself reinvests dividends? I am thinking it from a tax perspective. Thank you!
Thank you Thomas! Accumulating ETFs reinvest dividends by itself so there wont be any distribution, so everything is already bundled in the capital gains, including taxes
Good video. I am a EU resident. I opened an Interactive Brokers account. The problem is that i cannot buy a US domiciled ETF. They dont allow it. I dont know why. I bought VUSA ETF from Amsterdam stock exchange. In euro. I was interested in QQQ ETF, but it is based in US. Do you know if there is an equivalent of this ETF in Ireland? I want to buy an information technology ETF.
Hi Cristian, i understand that because apparently some EU regulations restrict EU residents from investing in US ETFs. That said, for QQQ replacement, you can look at CNDX (LSE) or CSNDX (Swiss). Note that QQQ is only 49% tech yea, its not 100% information technology ETF, else you can use this screener: www.justetf.com/en/find-etf.html
Hi Ziet, I've watched this multiple times and its such a great video. One question I would like to ask in your opinion is, would you switch from accumulating to dividend ETF when you retire for passive income? Or just stick to accumulating and do the 4% drawdown every year to cover retirement cost. Thanks.
Hi Adrian, good question, to be honest i haven’t planned until that point yet, probably would do more distributing ETFs if passive income is my preference, its still up in the air for me now haha
@@ZietInvests Keep it up, just discovered your channel and now spamming all video. 1 quick question tho, the CIMB Singapore online account opening must have passport? Mine expired last year 🤣
Hey Ziet! Could you explain how accumulative ETFs work through Interactive Brokers or any other broker? How do I, as an owner of an accumulative ETFs, get the ‘more shares as dividends’? Is it that first Interactive Brokers gets the more share as a dividend and give it to me? I really appreciate your videos as a beginner!
Hi there! With accumulating ETFs, the fund reinvest the dividends for you, as such, your profit grows as the share price of the ETF grows, which results in capital gains for you, just like any other growth stock. Hence there are no visible "dividends" paid!
Can I start with $1k with IB? There is any maintenance fees or minimum commission to maintain account since I’m buy and hold investor(less trade). Thanks
Hi Alen, you can start with any amount since there is no minimum requirement for IB😊 No Maintenance fees too, they have removed it since last month, can refer this video: ruclips.net/video/fvwoBjGPG8Y/видео.html Cheers!
Hmmm 2 different thing eh, FTEC is like all in tech while QQQ is 49% tech, personally I'd still go with QQQ just because i like the diversification better haha (single industry ETF tend to buy a lot of winner and losers as well)
@@ZietInvests True, but FTEC has more holdings kinda diversified too like within the tech haha, performance been good too. Also cheaper with 0.08 expense ratio. Just my 2 cents. Bydway keep churning more vids! Cheers mate
@@user-fm6lo2rt3l Nothing wrong with that, definitely works at that low fee if this is your preferred exposure! Have a great time and thank you so much for your kind words 🥰
Hi, there will never be an issue when it comes to investing, its totally up to your personal preference/goal/risk appetite. Overlap memang will overlap, you can mix them up and see whats the blended average and see if that fits your taste. I personally would just go for S&P 500 for growth. But for some form of capital preservation, VWRA wouldnt be a bad choice either!
Hi Ziet, thanks for the informative video! May I know what are the differences between CSPX and VUAA? since both of them are Ireland-domiciled and track the S&P 500. Which one would you recommend?
I currently have a US interactive account. That means opening in addition to that an authorization to the London Stock Exchange. Or authorization to trade in Irish shares.? I could understand you.
@@ZietInvests I see. I have just registered in IBKR according to your guide. May I know the pros and cons of investing in US ETFs comparing IBKR and FSM? Thanks in advance!
Hey! I been watching all your videos, I think you provide extremely valuable information! I have one question though: should I check for double tax treaty between IR and my resident country Argentina before buying these ETFs? Thank you in advance!
Hi Ziet, amazing explaination on the video, love it. Question: Does accumulating ETF also means that we get compounding interest on our dividends? Or it just help us reinvest money to buy more ETF shares?
Next video should be explaining the tax implications what you mentioned in the video. (with and without tax treaty with US) + the 60K tax for real estate.
Hi Jonah, I've explained it before in this video: ruclips.net/video/VIM1fczQdAE/видео.html Additionally, you can also read more in detail here: www.bogleheads.org/wiki/Nonresident_alien_investors_and_Ireland_domiciled_ETFs#No_Irish_taxes_of_any_kind_for_Ireland_domiciled_ETFs Let me know if it helps!
@@ZietInvests thank you. Regarding 60k estate tax, which you mentioned. If account holder is deceased, how do the funds transfer spouse/children Interactive Brokers?
@@Jonah-gd9me For US clients, IBKR has this "inheritance process" that can be setup. For non-US clients, one have to hire a lawyer to approach IBKR and setup a will for your next of kin.
Hi, you should pick according to your own investing goal and risk appetite! QQQ is definitely higher in volatility (and in reward too), and vice versa with MSCI World. I personally would go for S&P 500 or QQQ, either one!
with CSPX, QQQ & again VWRA basically you portfolio is 80% US based. isnt it? VWRA has > 50% for US. what is the point of CSPX & QQQ together...tracking same set of companies except nsadaq does not have financial
That is correct, though I am not saying one should buy all 3 of them together, I just tabled out what I think are the better ones and let people choose for themselves
Hi Navin, the returns are all extracted from each respective fact sheet (ending 30 June 2021), you can refer to the links in the description for them ☺️ I believe they are usually referring to capital appreciation, the dividends are really minimal in relative to the capital growth
Hi Ana, you need to check with applicable WHT for Swiss citizens (i'm afraid I don't know the answer since I'm not familiar with the Swiss law), but you should be able to find it from PwC or E&Y's publication
Using IBKR, you will be charged USD 4 per order for the Ireland ETF vs USD 1 for USA ETF. Therefore you need to buy 4 times the amount of the Ireland ETF in order to make the Ireland ETF a better choice?
Uhm not really, the maths doesn’t stack up like that. Its 1 GBP + regulatory fees for LSE (UK market). If you zoom out and view it on a long term impact wise, 15% dividend withholding tax savings on say 10,000 usd investment - compounded over 10 years is a huge amount
@@ZietInvestsThanks for the reply. If I put it into value, Ireland ETF still worth it even if I were to be paying USD 4 in comms to IBKR monthly over the next 20 years.
Thanks for the sharing. Could you elaborate more on the estate tax? So that applies to any US stocks holding for a non US resident? And so say family members withdraw, anything above $60,000 will be charged 40% is that correct?
Hi Jia Jun, I believe if inheritance is set in place for your next of kin, the IRS will impose the estate tax on your gross US assets, else if just withdrawal on your behalf, i don't think they are able to identify who is the person withdrawing it (hence its best to educate your next of kin how to withdraw on your behalf). Though I must say this is also something I am not very sure about as I am not a tax advisor or someone that is familiar with the IRS's taxes, best consult someone professional for a much accurate answer. Can read more here: www.bogleheads.org/wiki/Nonresident_alien_investors_and_Ireland_domiciled_ETFs#No_Irish_taxes_of_any_kind_for_Ireland_domiciled_ETFs
Dear Ziet, thank you for the high-quality informative video. You really put in a lot of time and effort to educate us. Just wondering why do the smaller Irish ETFs (e.g. CSPX) have a poorer (albeit slight) 1, 5 and 10 year return compared to their larger US ETF counterparts (e.g. VOO), since they are both meant to be tracking the same S&P500 index? And will that slightly poorer returns cancel out the tax benefits with the Irish ETFs? Thank you so much once again for your time bro!
Hi Christopher, that is a very good observation and I really appreciate your attention to detail - helps me to keep in check too! I believe that happens due to the tracking ability of the LSE ETFs, which is normal for them to deviate from the original Index's performance - since they are 2 separate bodies trying to replicate the same index, so inevitably there will be slight differences. That said, even though CSPX does seem to fall short of ~0.35% return p.a. (compared to VOO) for the 5-Year Return, i believe that difference is too negligible considering you are saving about ~0.20% of dividend WHT. This effectively gives you a ~0.15% price for investing with CSPX. However, don't forget that with CSPX, you are pulling away yourself from the US Estate Tax, and the "deviation" of tracking error can easily go the other way (who knows CSPX might deviate and performed better instead). Also, keep in mind that I might have taken both numbers at a slightly different date (sometimes VOO only provide the latest return numbers which are updated on a daily basis, whereas CSPX only provides their fund factsheet on a periodical basis - monthly if I am not mistaken, correct me if im wrong). Try extracting both with performance recorded on the same day and see if there's any difference, I'm keen to know too haha! Hope this helps!
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Note:
1. For Nasdaq-100 Index, there is a new alternative to QQQ that is QQQM (Listed on LSE, expense ratio of 0.15% p.a., traded in USD, but with significantly lower liquidity) - you might want to check this out if you are considering QQQ: www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-QQQM
Hi,
FTSE all world index , is actively managed etf? , or else it's like passive one like s&p 500 ,
If it's passive , who created this index and belongs to which country ?
If it is actively managed etf , then each company which offers this etf , will differ on the top holdings right
@@prabagaran.s1285 The ETFs tracking it are passive in nature, so you should refer to the manager of the ETFs tracking the index instead, which can be provided by MSCI etc.
To answer your question, FTSE Russell is the guys running the index behind it.
Can we able to buy vanguard total market index ? As non resident
@@prabagaran.s1285 You can check the relevant ETF on IBKR's product listing on their website
Hi Zeit, is there are reason why you didn't add VUAA in Irish domiciled etf? they have the same expense ratio both acc
This is the go to video for "which ETF should I buy?" - Very well made and packed with great content!
Hehe thank you so much for that bro, hope you're doing well!
@@ZietInvests All well thanks bro =)
Words cannot fully express my gratitude, sir! I want to let you know that your videos greatly helped me decide where to invest. Thank you so much for sharing these with us! 🙏🙏
You're most welcome my friend, all the best!!
Your videos are soo underrated! Greetings from Brazil :)
Thank you sooo much!! Stay safe and all the best brother! Love from Malaysia🥰
In one of your videos, noted VUAA and CNDX were best .. Ireland domicile etf for SnP and Nasdaq respectively..
Pls correct if wrong understanding
I hit the thumbs up before watching the contend ..keep it coming Mr Ziet 🤝🙌🏽
Hehe thank you so much Benjamin, really appreciate it! Hope you found some value from this video!
does ark considered as etf or mutual fund? and how do i pay the us tax or they cut it automatically? thanks
ARK is considered US ETF. IBKR will withhold 30% automatically before giving you the cash dividend (70%).
Not just 2 ETFs but 10 ETFs compressed into one single short video! We use the word "Power!" to describe such a feat. :)
One Q: Out of these 5 groups, if you have US$5K to spare, which would you go for & why?
Yayyyy thank you - all motivated by Power viewers like you!
Re your question, I would go for CSPX / QQQ, higher concentration means higher risk means higher reward, something I can afford since I am still young and have the privilege of time to let my money compound over the next few decades 😊
VWRA works too but a little bit too diversified for my risk appetite (note that I hold ~50% of TSLA in my stock portfolio, that just sums up my risk appetite haha)
@@ZietInvests Hehehe okok, thanks for the idea!
@@desmondyew1288 Cheers - remember to invest according to your own investment goals!
Hi any thoughts on high dividend paying ETFs like SCHD as a non US resident?
golden content for a person who is getting started 🙂
Glad you liked it!!
Brilliant video as always! Clear, to the point and great editing :)
Thanks a lot Claudia 🥰
if there is ticker cnx1 for UK in gbp and ticker cndx in USD that means that I have to purchase GBP version for me or it does not matter on long term as both listed on LSE ? I am based in UK
Hi Chris, refer to its fact sheet to see if they are tracking the same thing, if yes, then the difference should be just currency preference moving forward (keep in mind that you will also be bearing currency risk one way or another when you invest in the long term). Performance wise, they should be identical, its just the appreciation/depreciation of the trading currency.
Ziet, you rock as usual pal👍
Keep it up!
Thanks alot John! Have a great weekend!
Great Video... To the point. Keep up the good work !! Best wishes !!
Thank you so much!! Have a great week ahead!
Is it possible to replicate famous portfolios as the 3 ETF Fund Portfolio (Bogle) with Ireland ETFs?
Totally possible! But may need to tweak to match the weightage :)
whats the difference between isac and ssac? why does their graphs are so different if they are the same etf afterall?
They should be of the same fund, but have multiple listings in Swiss and London Stock Exchange, denominated in GBP and USD.
Also, sometimes the fact sheet may be quoting different date so you might see some different numbers there.
Hope this clarifies!
Hi Ziet, can I ask what is the difference between ISAC and VRWA?
Wondering which to buy into as both seem to cover all world indexes
Hi Jeremy, they are more or less the same, with some differences in their holding weightage and focus in a few countries, such as India/China etc..
Can read them on reddit to get a better idea: www.reddit.com/r/singaporefi/comments/l16mqk/isac_ishares_msci_acwi_ucits_etf_usd_acc/?context=3
Also, you can look up their fact sheet and see their holding assets - see how they allocate them!
Does it matter between "İshares core MSCİ emerging" and "Vanguard FTSE Emerging"? Have looked that inner is almost the same. OOk with country distribution. I have noticed that with "Vanguard emerging", for example, no south korea "samsung" share is included.Maybe that's a small difference? kwa quality and return will it not be difference I assume? Thank you so much.
Yeah actually its detailed on the fact sheet - the different is very minute, some funds like to do it this way while another do it another way - its more or less the same if you ask me (in the big picture)
hi ziet if i have house worth USD 1million but i invest US STOCK like VOO value USD 59,999 stock market how much tax should i pay if i pass away
Sorry if this is a dumb question but does ROI and net yield the same? I am referring to the Nasdaq 100 index part of the video. If the Net yield for QQQ is 0.136%, why does the table shows 20+%?
Hi there, they are 2 different thing.
Net yield here (or yield) usually refers to Dividend Yield - expense ratio. Means the net dividend you are getting after the expense ratio.
ROI stands for Return on Investment - usually refers to your total return on your invested capital. For example you invested USD 10,000 and at the end of the year your investment value stands at USD 11,000, then your ROI is (11,000-10,000)/10,000 = 10%. (the high return you see on QQQ)
Can read more on IRR or ROI on investopedia 😊
Hope this helps!
Thanks for the research and informative video!!
You're most welcome Allen!🥰
I cant find CNDX on IBKR, instead there is CNX1 listed on LSE with similar credentials, is it same?
I believe yes!
Thanks for that what do you think about semiconductor ETF`s I think there is only one in UK called Vaneck vectors semiconductors ticker SMH in UK SMH GB what do you think about that one listed in USA was success what do you think about UK version or EU version ?
Hi Chris, apologies as I have not studied into semiconductor industry extensively, so i can't really provide you any input there
Thanks again for this informative and really helpful overview. Appreciated!!
Pleasure is all mine to share with everyone these info! Have a great week ahead😊
Is CSPX on IBKR accumulating or distributed dividends?
Important question. Hi Ziet, you said that you prioritize accumulating fund -- is that is the case then the U.S. 30% dividend withholding tax is no longer relevant. Why not then we pick a U.S domiciled S&P 500 ETF (Accumulating) that is traded on NYSE/Nasdaq rather than Ireland-domiciled? -- am i missing something? Thanks Ziet
Hi beni, good question, thats because there's no accumulating ETFs in the US, by law they are all required to distribute their dividends hence they are all Distributing ETFs in the US
@@ZietInvests Ah okay, now that brings us to the 2nd more important question. When can we tell the distributing U.S domiciled S&P 500 ETF - that we want out dividend to be re-invested (i.e DRIP) into the fund, i.e. do they give us the option during registration? Or do you know any US fund that's offering it? Coz i'm thinking to do it via Rakuten. Thank you sir!
Can we use interactive brokers to buy stocks in other countries like India China Japan Singapore etc..
Ziet, what European or world ETFs ex. US are worth looking at?
Hello Ziet, thank you for your super nice video. I am facing problem regarding tickers. For example, in interactivebrokers I am seeing QQQ shows me that it is invesco QQQ TRUST SERIES 1 while QQQM is showing me that it INVESCO NASDAQ 100 ETF. I am confused. Which one should I buy? I am interested to buy ETF. Thank you for your help.
Hi Abdul, you can refer this video on QQQ and QQQM: ruclips.net/video/OQcQTjdJjOw/видео.html
Hi Ziet, how and where to find the EXPENSE RATIO of ETF in those website like Yahoofinance, investing etc? try to search high and lows. please advice. thanks
Hi there, Yahoo Finance show it under "Profile" > Annual Report Expense Ratio - finance.yahoo.com/quote/VOO/profile?p=VOO
Else, you can refer the description in this video to go to the ETFs' website, they should have it there.
Does it make sense to invest in an syp500 etf such as Cspx and at the same time invest in several sectorized etfs? (Tech, health, energy, financie, etc)
Hi, as long as your portfolio allocation meets your investment goal + risk appetite, why not?!
@@ZietInvests yes. I thought maybe it would be kind of redundant to jump into many sectorized etfs. At the moment I Am invested in cspx, iuit and iufs. But I was thinking about investing in energy and health care syp500 etfs as well. Thanks a lot
hi ziet, may i know how do you find the equivalent of US domicile ETFs in the Ireland domicile ETFs?
Hi Joyce, you can try justetf.com for this, their screener can find similar ETFs according to the filters you set
Hi Zeit, I really like your videos and find your insights very useful. Could you do a review on SPEQ. I understand that it's an equal index fund for S&P 500.
That's a very unique ETF 👀 I'll look into it!
Hi Ziet, I am sure this is a very newbie question to ask but I just registered an account with IBKR. I searched for CSPX and there were three selections, CSPX, CSPXN and CJPXJ. What are the difference between them? Which one should I choose if I want to invest in the one that you mentioned in your video? Thanks
Hi Boon Loo, they could be CSPX listed on other exchange such as Mexico/Swiss Exchange etc.
The one mentioned in this video is listed on LSE (London Stock Exchange) yeah, should be denominated in USD
If in doubt, can always tally the share price number on google, i.e. USD 487.33/share
Do you know any VUG alternative for ireland domiciled etf?
Can't think of any at the top of my head, but you can filter for it at justetf.com
Hope this helps!
If i was to invest 11,000 USD on the FTSE All-World Index for one year. I could be expected to get back around 4,290 ?
Hi Ziet! Thanks a bunch for all your videos! This video is a little bit "old", so maybe you could (or you have plans) record a new one for same theme?
Hi Oleg - I'd think most of it is still in tact! But yes, I should definitely review and maybe publish an updated one!
I am in Europe and use IBKR. If I buy the CDNX, and I purchasing it in GBP?
Yes you can do that if you can get the GBP denominated ETF ticker 😊
Did ISAC change its ticker to SSAC?
There's 2 variants!
Hi Ziet, can u please talk more about the US ESTATE TAX? Thank you
Hi Ivan, it's something that I'm still researching on! Will update everyone when I have more information on that!
Hi Ziet, Thanks for your great works and sharing passionately. I love to watch your video and learn a lot too.
I would like to suggest that you can do a HK listed ETFs review. especially those with Tech stocks (both software and hardware) ETFs.
Keep up the good works! Cheers!
Hi there, thank you so much for your heartwarming content. Noted on your request on HK ETFs but I am currently not really into these market yet - maybe sometime in the future 😁
@@ZietInvests Thanks...appreciate your fast reply. I think HK ETF and those tech related could be under the radar of many retail investors....waiting for the regulatory storms to be over soon.
@@rndchan1405 Yeah I know that because I've been receive lots of message about them too, the thing is the political uncertainty remains there even though the valuation looks attractive - its still a risky play considering the CCP is pretty much unpredictable haha!
Thank you Your etfs are good but IYW qqq and schg are the greatest based on the last ten year return
Those are good ETFs too, I can never cover all of them in 1 video haha!
Thank you for the amazing content & explanation to foreigners :-)
You're most welcome Edson, pleasure is all mine!🥰
Hi Zie,being in middle east how can i invest in vanguard index funds
Hi Zara, you can invest in their ETF via Interactive Brokers, can follow this video guide: ruclips.net/video/_4KJY8MVC5g/видео.html
Thank you for the video, it's so informative that i keep revisiting it once in a while (that means i haven't make up my mind which one to buy since Ringgit is so weak, have to think twice before investing haha)
Hehe glad you liked it so much Leanna! I do visit back sometimes too to refresh my knowledge xD I guess thats what a piece of (hopefully) good research does!!
Investing is an open-ended game, our preference will always change from time to time so don't worry about it too much😄
Better than invest in our local bursa. Buy a few stocks there like Maybank or REITs and you'll get what I mean. Keep up and down to same level.
@@david_Godlovesyou you know i know 🤣
Why isn't VUSA a good option for S&P 500? Has higher liquidity and holding assets?
VUSA is great too, but GBP and Distributing trait is not my personal preference.
I did list it as one of the options for those whom prefer GBP and Distributing trait. (Many of my viewers are new to the US market so most of them are trading with USD, so GBP may not be the most appealing option).
Can refer this video: ruclips.net/video/VIM1fczQdAE/видео.html
@@ZietInvests yea seen that video before & is a good summary👍🏼
@@weijie9851 Thank you!
Hey Ziet! I just found out about IE-domiciled ETFs thanks to your video. I'm a bit confused on the naming convention. Are all UCITS ETFs IE-domiciled? If not, how do I check which country it is domiciled in? Most of the prospectus I looked at don't mention which country, but just Europe in general, which is a bit confusing for me. Are EU-domiciled and IE-domiciled the same thing?
Hi Sean, not all ETFs have UCITS certification ya, and that is not just applicable to Ireland domiciled ETFs.
You can refer this video guide on how to read ETF factsheet, there you should be able to identify where the ETF is domiciled in: ruclips.net/video/Xc6OghOqwdU/видео.html
They should say where they are domiciled for tax purpose, else check their respective website (blackrock, vanguard etc.), should have!
Hope this helps!
Hello! I am from Ireland. What platform should I use to start investing in ETF?? Thanks
Hello there! I would recommend you Interactive Brokers (well established, cheapest, and wide coverage): ruclips.net/video/f__HgJRe3nU/видео.html
Hey Ziet, what would the difference be for the same ETF which are listed in diff countries. For example, for EIMI,you’d have EIMI.L / EIMI.MI among the choices to choose from. Other than the currency difference in which these etfs are denominated, are there any other differences in long term holding risk /performance, liquidity concerns? Although it is both provided by Ishares.
Hi Sherwin, on top of the currency risk, if the fund is domiciled on different country, then investors investing in it will be subjected to the country's taxation. Liquidity is definitely different for different listing exchange - which may affect the trading spread as well.
Hi Ziet, is SWRD a good etf? It invests in developed countries medium and big caps and is Irish domiciled. Kinda regret after buying it as it still can’t beat cspx. Seldom go up in term of numbers.
Hi David, I guess you already answered the question yourself - your Good/Bad is benchmarked against the S&P 500, so why not S&P 500 instead haha!
Whether it is good/bad is hard to answer since developed countries are unpredictable and susceptible to many political risks before they can even come close to developed nations - until then, it would most likely underperform S&P500. Hope this helps!
good video - been deciding between QQQ and CNDX - CNDX unfortunately isnt on IBKR LSE but on SIX higher fees. tho still worried about the estate tax for US-domiciled .
Hi Atlas, that is correct, I have no idea why CNDX (USD LSE version) is not on IBKR, maybe its a hint for us to go for QQQ instead hahaha! If you are worried about US estate tax, then you can take a look at EQQQ listed on LSE (traded with GBP, distributing), its also by Invesco: etf.invesco.com/sites/default/files/documents/IVZ_EQQQ_FACTSHEET_RETAIL_EN.pdf
@@ZietInvests Awesome video as always? Can we go with CSNDX instead(listed on IBKR). It trades on Swiss exchange but is Irish domiciled. Should that matter?
Legen👑
3:43 buy CSPX at MARKET PRICE. Dont use buy limit as it will buy at a higher price(premium) based on my unfortunate exprience😁
Why would market order be cheaper than limit order?
Hmm i don't think Market order would help either, if anything it will just assign you to the closes Ask price (which could be worse for you). I think the premium is just something that is bound to happen for non-liquid ETFs/stocks such as the Irish funds
Dats true, in theory both depends on the buy/sell prices available but based on my previous buys, i got the best price when i bought with market price rather than setting buy limit. But in da end its juz like sifu ziet says, low liquidity=high probability of higher buy prices than market
@@joeymangkok haha no sifu sifu lah, we are all student of the market
Hi, Return mentioned above in Minutes 3.36, if is after dividend distribution for VOO and before dividend distribution for CSPX, then then return is no diff alto 30% vs 15% WTH tax? thanks
and also for 5Y and 10Y return, is it referring to average return or cumulative return?
Hi Kian Kay, if im not mistaken, the return mentioned should include capital growth and dividends distributed, so the final return between both of them should be roughly the same.
The difference is when it reaches your hand as a non-US resident, for which you will be subjected to the dividend WHT
It's referring to annualized return for 5Y and 10Y! % p.a.
Hi Ziet, I've got a quick question on the US estate tax. Will it trigger if my total investment is more than 60k but individual investment is less than 60k? For example if I have 50k in VOO, and 50K in QQQ.
Hi Brian, I might not be the best person to answer that, but if I'm not mistaken, it's applicable to your gross asset in the US, can read further here: www.irs.gov/businesses/small-businesses-self-employed/estate-tax
Investopedia: www.investopedia.com/estate-tax-exemption-2021-definition-5114715
This is a grey area to me as well because it is hard to get hold of someone that is familiar with this matter, so I can only rely on my online findings.
I also want to add on a question, if I invest 60k and it accumulates over the years to be more than 60k in value, will estate tax be activated?
@@aaronchia3952 Should be, its on gross amount, regardless of your initial capital
Good day sir, may I ask if US Withholding tax is applicable for buying US treasury bonds (asset allocation) as Malaysian? What is your view regarding VTI ? Thanks
Hi, withholding tax is applicable for all dividends paid by US domiciled assets (regardless of stock, ETFs).
VTI is a great ETF but the reason why I didn't cover it is because it is a US domiciled ETF (there's no ireland counterpart) which means more dividend withholding tax losses + US estate tax
@@ZietInvests Many thanks. Do you plan to include any bonds into your portfolio? I have heard comments regarding EPF serves like bonds in balancing the volatility in our portfolio so we don’t need bonds. What do you think?
@@hsl1652 Not for this moment as I'm relatively young at 26, so I'm taking more risks, bonds are usually more geared for wealth preservation rather than growth.
Not sure about EPF, I never bothered about their asset allocation since it was meant for retirement, and I aim to retire without the need to rely on retirement account
Ziet, is there any difference in investing in Ireland domiced etf on the Swiss / Amsterdam / Swiss stock exchanges, as compared to LSE?
Hi Wei Lim, usually just the fee difference. Also they can all be denominated in different base trading currency, and have different liquidity as LSE is larger
@@ZietInvests Thanks for answering Ziet!
I ask this question is because I'm interested in the EXCS ETF but the one in LSE is denominated in GBP and the trading volume is extremely low. Saw that the same etf under another ticker EXCH was available under EBS in USD with better volume so thought of trying it out.
What are some higher returns etf that are Ireland domiciled etf? I was thinking qqqm and cspx to make my entire simple portfolio but it overlaps 40% what would you recommend?
Hi Gaius, while QQQM and CSPX are popular ETFs, the 40% overlap can limit diversification (if that's your intention). Here are a few suggestions for Ireland-domiciled ETFs with potential for higher returns:
- IWDG: iShares MSCI World Quality Dividend UCITS ETF focuses on high-quality dividend-paying companies globally.
- EMQQ: EMQQ Emerging Markets Internet & Ecommerce UCITS ETF provides exposure to emerging market companies in the internet and e-commerce sectors.
- IWDA: iShares Core MSCI World UCITS ETF tracks the performance of large and mid-cap stocks across developed markets globally.
- EIMI: iShares Core MSCI EM IMI UCITS ETF offers broad exposure to emerging market equities, including small-cap stocks.
Hope this helps!
Hey, thank you for the content! It helped me a lot with my research. I've one question tho: if the accumulating ETFs reinvest the dividends, why its performance is generally lower than the US counterparts ? Thanks!
Hi there, that can be many reasons, sometimes due to tracking error as well because they could be rebalancing in a different time period!
Hi there! I find your channel one of the most valuable ETF channels. I wanted to thank you for your contributions and ask you:
-What ETFs would be the best for Argentinians residents? It will mean a lot since I've been cracking my head so much on this matter. Thank you!
Hi Ziet. I am wondering how the tax law in Malaysia for US stock market gainz. How you can make a video about it.
Hi Wilson, you can refer this video: ruclips.net/video/VIM1fczQdAE/видео.html
Hi Ziet! Thank you for the amazing content as usual! I am planning to DCA into CSPX but do you realised of the Deemed Disposal every 8 years at a rate of 41%? I appreciate your reply and could you please share with us that if this is going to affect us as Malaysian to pay for this high tax if we happen to sell off the ETFs ? Thank you!
Hi Joanne, I am aware of that, in fact it got me worried for a good few weeks before I found out about this from boglehead's article: "Ireland applies no taxes of any kind on non-Irish residents who hold Ireland domiciled ETFs. Ireland domiciled ETFs are therefore completely 'tax transparent' to investors, making them preferable to US domiciled ETFs for investors in any country with poor or no US tax treaty coverage, and often acceptable to investors even in countries with good US tax treaty coverage."
Source: www.bogleheads.org/wiki/Nonresident_alien_investors_and_Ireland_domiciled_ETFs#No_Irish_taxes_of_any_kind_for_Ireland_domiciled_ETFs
More from forum: www.bogleheads.org/forum/viewtopic.php?t=251843
I could be wrong, but this is also something that I would love to have further clarity on
10 years is too short to tell long term performance, especially when US stock market seems to have very high CAPE ratio. Thats why I hold a lot more VXUS than VWRA, maybe should hold some IEMG or EMXC also.
You have a good point, the reason why I took up to 10 years is because I don't want to bore everyone with too many numbers as this was meant to serve as a "trailer" for viewers to search up the relevant fact sheet so they can decide for themselves 😂 plus the market moves pretty fast nowadays
VXUS - This was initially part of the consideration for my video but I didn't want to stack up too many worldwide ETF (VWRA, ACWI, VXUS) even though I really wanted to put VXUS in, but I ultimately dropped it among the 3 due to it being US domiciled (1+% dividend yield and US estate tax in mind), hence I went for its cousin instead. That in mind, I actually searched really hard for the substitute for VXUS but no luck 😂 (did i miss anything?). I certainly would love to cover VXUS in my future video, just need to find a relevant theme to do it.
EXMC - interesting, didn't come across this during my research, thanks for the suggestion!
Hi Zeit, do Accumulating ETF's dividends are taxed the same as Distributing ones?
Yes! Though the level of where its taxed is a bit different, the end product should be the same for investors
What about VT(Vanguard Total World Stock ETF)? Covering 9000+ stocks and expense ratio of only 0.08%.Isn't it covering the same thing as VWRA? Currently holding quite some amount of VT in my portfolio.
Almost the same but VT is a US domiciled ETF, hence you will lose in terms of dividend WHT and US estate tax is also applicable.
VWRA is Irish fund so for most of us, there's more dividend savings there.
Sorry to re-open an old video/thread, Ziet, but are you aware of any ETFs that track the FTSE global all-cap index (large, mid and small cap companies in both emerging and developed markets)? There is a Vanguard index fund that does so, but it appears that it is only available to UK investors (and is denominated in GBP)
Hi christopher, as far as i know, few funds track the FTSE Global All Cap Index (can check on justetf.com to look for the alternatives). An alternative could be a mix of ETFs that cover large, mid, and small-cap companies across developed and emerging markets!
Hey Ziet, Thanks for another great video. Would you consider doing an ETF portfolio allocation sample video?
Hi Randy, thank you for the kind words. I have that idea in mind but the main challenge with this is - this is highly highly dependent on individual risk appetite and investment goal so its a touch one to crack, let me think about how I can structure this into a proper video 😊
@@ZietInvests Thanks for your reply and the great content. What about conservative/ balanced/ aggressive? or something like that. I just noticed that there's not a lot of non US resident information, especially for the younger generation that's just starting out.
@@randytaylor4439 Yeah definitely something worth pondering on, might need more research so that I can come out with something 😊 Definitely I will have more content on ETFs for sure!
Is it better to accumulate a lump sum amount before investing in a particular ETF to prevent loss on forex and trading fee. Like invest a lump sum of RM12000 when i accumulate it, rather than RM1000 per month. Need your opinion 😀
Yup that works too, the more you convert/transfer once, the less forex/conversion losses you incur. Depending on your income, some people don't mind investing once every 2-3 months, so its really subjective to your investment objective haha!
Ziet, thanks so much for another great video! Just a question, is QQQM a good alternative for QQQ ETF since it tracks the same Nasdaq-100 and with a slightly lower expense ratio.
Hi Heidi, they are almost identical, with QQQM being super new hence their liquidity is very very low. With lower liquidity you might find yourself paying a premium to your trading price, or selling at a loss, explained here: ruclips.net/video/Xc6OghOqwdU/видео.html
For example if you queue at USD 151/share, you could be matched at USD 153/share.
Hi Ziet, any decent Reits or Reits ETF domiciled in Ireland ? Future planning for when interest rates start going down again. Thanks
Hey there, I don't have any Irish dividend REITS at the top of my head now, but could be something worth exploring down the road! Will keep you guys updated with it when its up!
So if we invest more than 60k$ on US stocks, we will need to pay 40% tax ?? is this on the dividend only or all the capital gain ?
That 40% is applicable upon demise, on your gross US asset above USD 60,000 (exempted), so if you have 100,000 invested, I believe the 40% is applicable to the USD 40,000. Best to confirm with with a tax advisor!
Hey! Thanks for the content, great video! Does anybody know if with accumulating etfs do you still realize gains everytime the etf itself reinvests dividends? I am thinking it from a tax perspective. Thank you!
Thank you Thomas! Accumulating ETFs reinvest dividends by itself so there wont be any distribution, so everything is already bundled in the capital gains, including taxes
Thank Ziet, very good information. One request for you, would you do a comparison for China stock ETF?
Hi chang sheng, I am not into the Chinese market at the moment tho :x Might do one in the future!
Good video. I am a EU resident. I opened an Interactive Brokers account. The problem is that i cannot buy a US domiciled ETF. They dont allow it. I dont know why. I bought VUSA ETF from Amsterdam stock exchange. In euro. I was interested in QQQ ETF, but it is based in US. Do you know if there is an equivalent of this ETF in Ireland? I want to buy an information technology ETF.
Hi Cristian, i understand that because apparently some EU regulations restrict EU residents from investing in US ETFs. That said, for QQQ replacement, you can look at CNDX (LSE) or CSNDX (Swiss).
Note that QQQ is only 49% tech yea, its not 100% information technology ETF, else you can use this screener: www.justetf.com/en/find-etf.html
@@ZietInvests thanks!
@@krism1225 Welcome!
Hi Ziet,
I've watched this multiple times and its such a great video.
One question I would like to ask in your opinion is, would you switch from accumulating to dividend ETF when you retire for passive income? Or just stick to accumulating and do the 4% drawdown every year to cover retirement cost.
Thanks.
Hi Adrian, good question, to be honest i haven’t planned until that point yet, probably would do more distributing ETFs if passive income is my preference, its still up in the air for me now haha
No bullshit best Malaysian financial yt channel
Thank you so much Zhen Wei, this means a lot to me 😭😭😭
@@ZietInvests Keep it up, just discovered your channel and now spamming all video. 1 quick question tho, the CIMB Singapore online account opening must have passport? Mine expired last year 🤣
@@gcyt7462 I recently opened mine. No need passport. Just IC and proof of address.
@@babydevil5019 Thank you for the answer, appreciate it!
@@gcyt7462 Nowadays no need passport liao (they've removed that requirement!) - don't forget to spam the the LIKE button too 🤣 Have a great weekend!
Hey Ziet!
Could you explain how accumulative ETFs work through Interactive Brokers or any other broker?
How do I, as an owner of an accumulative ETFs, get the ‘more shares as dividends’? Is it that first Interactive Brokers gets the more share as a dividend and give it to me?
I really appreciate your videos as a beginner!
Hi there! With accumulating ETFs, the fund reinvest the dividends for you, as such, your profit grows as the share price of the ETF grows, which results in capital gains for you, just like any other growth stock. Hence there are no visible "dividends" paid!
Can I start with $1k with IB? There is any maintenance fees or minimum commission to maintain account since I’m buy and hold investor(less trade). Thanks
Hi Alen, you can start with any amount since there is no minimum requirement for IB😊
No Maintenance fees too, they have removed it since last month, can refer this video: ruclips.net/video/fvwoBjGPG8Y/видео.html
Cheers!
Ziet qqq or ftec? Which is your preference 😄
Hmmm 2 different thing eh, FTEC is like all in tech while QQQ is 49% tech, personally I'd still go with QQQ just because i like the diversification better haha (single industry ETF tend to buy a lot of winner and losers as well)
@@ZietInvests True, but FTEC has more holdings kinda diversified too like within the tech haha, performance been good too. Also cheaper with 0.08 expense ratio. Just my 2 cents. Bydway keep churning more vids! Cheers mate
@@user-fm6lo2rt3l Nothing wrong with that, definitely works at that low fee if this is your preferred exposure! Have a great time and thank you so much for your kind words 🥰
Hi Ziet, if I want to buy S&P500 but also want to hold international ETF as well, would CSPX and VWRA overlap and is it a problem?
Hi, there will never be an issue when it comes to investing, its totally up to your personal preference/goal/risk appetite.
Overlap memang will overlap, you can mix them up and see whats the blended average and see if that fits your taste.
I personally would just go for S&P 500 for growth. But for some form of capital preservation, VWRA wouldnt be a bad choice either!
Hi Ziet, thanks for the informative video! May I know what are the differences between CSPX and VUAA? since both of them are Ireland-domiciled and track the S&P 500. Which one would you recommend?
Hi corine, the only difference is their fund manager!
In order to trade in Irish funds, will I have to open interactive trading authorizations?
Yup you will have to request for trading permission for United Kingdom (London Stock Exchange)
I currently have a US interactive account. That means opening in addition to that an authorization to the London Stock Exchange. Or authorization to trade in Irish shares.? I could understand you.
Hi Ziet, may I ask if we can buy US ETFs like VOO, QQQ, and VTI on FSM Malaysia platform?
Hi Chiek, yes you should be able to, make sure you have requested for foreign equity trading permission from FSM Malaysia
@@ZietInvests I see. I have just registered in IBKR according to your guide. May I know the pros and cons of investing in US ETFs comparing IBKR and FSM? Thanks in advance!
Anywhere I can find all the Ireland domiciled ETF's ?
Hi Shanthi, try justetf.com (refer this video: ruclips.net/video/Xc6OghOqwdU/видео.html)
@@ZietInvests I posted this question and after that I watched that video as well. Thanks a mil !
Hey! I been watching all your videos, I think you provide extremely valuable information!
I have one question though: should I check for double tax treaty between IR and my resident country Argentina before buying these ETFs? Thank you in advance!
Bro how to invest in these etf? Which platform to invest?
Hi there, I use Interactive Brokers, you can follow this guide: ruclips.net/video/f__HgJRe3nU/видео.html
Is there an end date to this treaty??
Technically should have, but they usually just refresh n extend it if there’s no trade issues going on
Very informative thanks
Glad it was helpful!! Do check out our other ETF videos☺️
Hi Ziet, amazing explaination on the video, love it.
Question: Does accumulating ETF also means that we get compounding interest on our dividends? Or it just help us reinvest money to buy more ETF shares?
Hi Mike, that is correct, it reinvests and compound the return in the form of capital gains in its share price :) (Not buy more fractional shares ya)
@@ZietInvests Awesome, might as well buy more shares and let it compound more, thanks for the reply!
Next video should be explaining the tax implications what you mentioned in the video. (with and without tax treaty with US) + the 60K tax for real estate.
Hi Jonah, I've explained it before in this video: ruclips.net/video/VIM1fczQdAE/видео.html
Additionally, you can also read more in detail here: www.bogleheads.org/wiki/Nonresident_alien_investors_and_Ireland_domiciled_ETFs#No_Irish_taxes_of_any_kind_for_Ireland_domiciled_ETFs
Let me know if it helps!
@@ZietInvests thank you. Regarding 60k estate tax, which you mentioned. If account holder is deceased, how do the funds transfer spouse/children Interactive Brokers?
@@Jonah-gd9me For US clients, IBKR has this "inheritance process" that can be setup.
For non-US clients, one have to hire a lawyer to approach IBKR and setup a will for your next of kin.
First time buying. How to buy on interactive brokers?
Hi Levinia, you can refer this tutorial on how to buy them: ruclips.net/video/d3lbID8A-Yc/видео.html
Hi Ziet, I just bought cspx and want to invest in the second ETF for diversification. Do you pick QQQ or MSCI?
Hi, you should pick according to your own investing goal and risk appetite! QQQ is definitely higher in volatility (and in reward too), and vice versa with MSCI World. I personally would go for S&P 500 or QQQ, either one!
@@ZietInvests thanks
with CSPX, QQQ & again VWRA basically you portfolio is 80% US based. isnt it? VWRA has > 50% for US. what is the point of CSPX & QQQ together...tracking same set of companies except nsadaq does not have financial
That is correct, though I am not saying one should buy all 3 of them together, I just tabled out what I think are the better ones and let people choose for themselves
hi ziet, am a bit confused, your 5/10 year return is based on capital appreciation? as i noticed the dividend yield for this etf are quite low. thanks
Hi Navin, the returns are all extracted from each respective fact sheet (ending 30 June 2021), you can refer to the links in the description for them ☺️ I believe they are usually referring to capital appreciation, the dividends are really minimal in relative to the capital growth
If I am residing in Switzerland and buying VOO, do I need to pay US tax amount?
Hi Ana, you need to check with applicable WHT for Swiss citizens (i'm afraid I don't know the answer since I'm not familiar with the Swiss law), but you should be able to find it from PwC or E&Y's publication
@@ZietInvests thanks!
Good job, Plz more shariah compliant etf 🙏
I will take note on that, thanks alot! 😊
Using IBKR, you will be charged USD 4 per order for the Ireland ETF vs USD 1 for USA ETF. Therefore you need to buy 4 times the amount of the Ireland ETF in order to make the Ireland ETF a better choice?
Uhm not really, the maths doesn’t stack up like that. Its 1 GBP + regulatory fees for LSE (UK market). If you zoom out and view it on a long term impact wise, 15% dividend withholding tax savings on say 10,000 usd investment - compounded over 10 years is a huge amount
@@ZietInvestsThanks for the reply. If I put it into value, Ireland ETF still worth it even if I were to be paying USD 4 in comms to IBKR monthly over the next 20 years.
Thanks for the sharing. Could you elaborate more on the estate tax? So that applies to any US stocks holding for a non US resident? And so say family members withdraw, anything above $60,000 will be charged 40% is that correct?
Hi Jia Jun, I believe if inheritance is set in place for your next of kin, the IRS will impose the estate tax on your gross US assets, else if just withdrawal on your behalf, i don't think they are able to identify who is the person withdrawing it (hence its best to educate your next of kin how to withdraw on your behalf). Though I must say this is also something I am not very sure about as I am not a tax advisor or someone that is familiar with the IRS's taxes, best consult someone professional for a much accurate answer.
Can read more here: www.bogleheads.org/wiki/Nonresident_alien_investors_and_Ireland_domiciled_ETFs#No_Irish_taxes_of_any_kind_for_Ireland_domiciled_ETFs
@@ZietInvests I see I see. Thanks for the sharing!!
@@JJWongJiaJun Most welcome!
I want to ask a personal question. Where can I reach you to ask?
You can always dm me on instagram or email me at hello@ziet.co 😄
Dear Ziet, thank you for the high-quality informative video. You really put in a lot of time and effort to educate us. Just wondering why do the smaller Irish ETFs (e.g. CSPX) have a poorer (albeit slight) 1, 5 and 10 year return compared to their larger US ETF counterparts (e.g. VOO), since they are both meant to be tracking the same S&P500 index? And will that slightly poorer returns cancel out the tax benefits with the Irish ETFs? Thank you so much once again for your time bro!
Hi Christopher, that is a very good observation and I really appreciate your attention to detail - helps me to keep in check too!
I believe that happens due to the tracking ability of the LSE ETFs, which is normal for them to deviate from the original Index's performance - since they are 2 separate bodies trying to replicate the same index, so inevitably there will be slight differences.
That said, even though CSPX does seem to fall short of ~0.35% return p.a. (compared to VOO) for the 5-Year Return, i believe that difference is too negligible considering you are saving about ~0.20% of dividend WHT. This effectively gives you a ~0.15% price for investing with CSPX.
However, don't forget that with CSPX, you are pulling away yourself from the US Estate Tax, and the "deviation" of tracking error can easily go the other way (who knows CSPX might deviate and performed better instead).
Also, keep in mind that I might have taken both numbers at a slightly different date (sometimes VOO only provide the latest return numbers which are updated on a daily basis, whereas CSPX only provides their fund factsheet on a periodical basis - monthly if I am not mistaken, correct me if im wrong). Try extracting both with performance recorded on the same day and see if there's any difference, I'm keen to know too haha!
Hope this helps!
@@ZietInvests
Estate tax on all securities held in US stock exchange or only for dividends. Could you clarify.
Thank you in advance
@@gparamaeswary7276 Estate tax is levied on all securities held by the individual above the threshold amount of USD 60k.
Great great great job …thank you Ziet👏🏽👏🏽👏🏽😊
Thank you so much Kannan 🥰 So glad to see you back here again, have a great weekend!
@@ZietInvests always 😊…have a great weekend !