Hello SwissPersonalFinance community
First of all I want to thank you all, as I've learned a lot through this subreddit.
I have an amount that I want to invest in the next couple of months/years. My time horizon is about 30-40 years. Since it is a lump sum investment and I will hold it for very long, I want to invest in a swiss broker (like Swissquote, Postfinance, etc.). This is due to that they guarantee the full amount of Sondervermögen, as I understand and IBKR only 500k. For my regular investments i might switch to IBKR.
Now I want to ask you guys what you would recommend?
Invest in VT? It has a TER of 0.07% and as I understand I can get 15% back of the dividends, as it is US-domiciled. I have read somewhere, that I have to declare my taxes to the US government, when I have more than 50k of investments in US ETFs. Is this true and if yes, is it complicated? Since it only trades in USD i have to pay around 0.95% of currency exchange fees. Is it true that I get this tax only back for an invested amount of up to 60k CHF and not more? Can I also get this amount back if I invest via a swiss broker instead of a US broker like IBKR?
Invest in VEVE and VFEM? It has a TER of 0.12% and 0.22%, the weighted total is about 0.13%, as VEVE makes up about 88% of a market-weighted all-world etf. Same as VWRL it is traded in CHF. Regarding this I have a question about rebalancing, as I understand I do not have to rebalance (except for difference in fees). Because if emerging markets rise lets say to 40%, than this is already rebalanced to the current market cap. So is rebalancing mainly unnecessary?
Invest in VWRL? It has a TER of 0.22% and is also traded in CHF.
Invest in SSAC (ACWI)? It is also traded in CHF and has a TER of 0.2%. In contrast to the other solutions it is the only accumulating ETF, as I see.
How much of a difference makes the withholding tax of VT in comparison to VEVE + VFEM? The TER difference is about 0.06% and the withholding tax gives me back about 15% of 2%, so lets say 0.3% of the total ETF (and I have to pay taxes on this). So the total gain is about 0.3% (including dividend income taxes) on VT against VEVE + VFEM and about 0.4% against the other two solutions? Is this correct? How much paperwork is the VT solution in comparison to the other three solutions? What is with VWRL and SSAC?
Which of these four options would you recommend, under the circumstance that it is a swiss broker and a lump sum investment? VT i would have to convert back to CHF in the end anyway. Also i have to take into account the 0.95% currency conversion fee for VT.
First of all I want to thank you all, as I've learned a lot through this subreddit.
I have an amount that I want to invest in the next couple of months/years. My time horizon is about 30-40 years. Since it is a lump sum investment and I will hold it for very long, I want to invest in a swiss broker (like Swissquote, Postfinance, etc.). This is due to that they guarantee the full amount of Sondervermögen, as I understand and IBKR only 500k. For my regular investments i might switch to IBKR.
Now I want to ask you guys what you would recommend?
Invest in VT? It has a TER of 0.07% and as I understand I can get 15% back of the dividends, as it is US-domiciled. I have read somewhere, that I have to declare my taxes to the US government, when I have more than 50k of investments in US ETFs. Is this true and if yes, is it complicated? Since it only trades in USD i have to pay around 0.95% of currency exchange fees. Is it true that I get this tax only back for an invested amount of up to 60k CHF and not more? Can I also get this amount back if I invest via a swiss broker instead of a US broker like IBKR?
Invest in VEVE and VFEM? It has a TER of 0.12% and 0.22%, the weighted total is about 0.13%, as VEVE makes up about 88% of a market-weighted all-world etf. Same as VWRL it is traded in CHF. Regarding this I have a question about rebalancing, as I understand I do not have to rebalance (except for difference in fees). Because if emerging markets rise lets say to 40%, than this is already rebalanced to the current market cap. So is rebalancing mainly unnecessary?
Invest in VWRL? It has a TER of 0.22% and is also traded in CHF.
Invest in SSAC (ACWI)? It is also traded in CHF and has a TER of 0.2%. In contrast to the other solutions it is the only accumulating ETF, as I see.
How much of a difference makes the withholding tax of VT in comparison to VEVE + VFEM? The TER difference is about 0.06% and the withholding tax gives me back about 15% of 2%, so lets say 0.3% of the total ETF (and I have to pay taxes on this). So the total gain is about 0.3% (including dividend income taxes) on VT against VEVE + VFEM and about 0.4% against the other two solutions? Is this correct? How much paperwork is the VT solution in comparison to the other three solutions? What is with VWRL and SSAC?
Which of these four options would you recommend, under the circumstance that it is a swiss broker and a lump sum investment? VT i would have to convert back to CHF in the end anyway. Also i have to take into account the 0.95% currency conversion fee for VT.