@elliot123 Just invest in VWRL instead. Ok, VT has lower fees, but you pay higher witholding taxes on the distribution as VT is US-domiciled.
I explain that in more detail:
- When a security is domiciled in the US, then you pay 30% witholding tax on the distribution. On a distribution of 2% that makes 0.6% taxes
- When a security is domiciled in Ireland, then you only pay 15% witholding tax. That makes taxes of 0,3%.
- When an ETF is domiciled in Ireland and synthetic you pay no witholding taxes.
Result:
- The difference in management fees BEFORE taxes is 0,15% in favor of VT. (VT: 0,07% / VWRL: 0,22%).
- The difference in fees AFTER taxes is approximately 0,15% in favor of VWRL. (VT: 0,67% / VWRL: 0,52%).
(For simplicity, the distribution was rounded to 2% for both securities)