Best fund domicile?

[ezworldwide]

Hello, I live in Switzerland and I’m new to ETF investing.

So much information and I am confused on fund domicile. Is it better to buy something based in Ireland? USA? Luxembourg?

What gives the best tax opportunity cost?

Any suggestions on 5 ETF where to invest 10k each as a lump sum?

Thank you

 

[ahdongliew]

@ezworldwide Hi, there is a quite good article by Mustachian about the withholding taxes based on fund domiciliation.

https://www.mustachianpost.com/with...ends-received-the-theory-as-a-swiss-investor/

 

[ezworldwide]

@ahdongliew Thank you!

 

[sunnyhope]

@ezworldwide US domiciled is best for US equity. You pay only 15% on dividends which you can claim back via DA-1.

Ireland is better than Luxembourg, as the former has 15% you cannot claim back, the latter 30%.

But also, get IBKR, not a swiss broker, the latter have to charge you a stamp duty on every transaction. Also, IBKR anyway has lower commissions and better FX than swiss brokers.

For non-US equity I do not know which is best, this will depend on each country's tax agreements. But I would suspect most people either buy US or World which is mostly US, so I would suggest US domiciled ETFs will most likely be better. They also have lower costs from what I can tell, but this is limited to the ETFs I have compared so may not be true universally.

 

[ezworldwide]

Any suggestions on solid ETFs based in Ireland paying dividends?