@startupchristian I am using investment trusts too, but I was looking at comparisons between ETFs and UK based IT's and once all fee's and taxes are payed the ETFs such as VWCE usually end up on marginally top after 15-20 years
@saachristian757 I've seen those comparisons and they assume a pretty high IT fee of 1% or greater. In reality many are well below that. They can still underperform the market, but I'll accept the risk.
My biggest issue with deemed disposal is being taxed on unrealised gains. It's obscene, no other country in the world has this ridiculous rule.
@startupchristian Its an unfair tax, but I still think its one of the best options we have in Ireland. I agree trust funds have their place hence investing €120 a month. What trusts do you invest in personally?
@saachristian757 Considering that you're young, I'd say it wouldn't be a bad idea to put a solid part of your investment portfolio into an EU listed leveraged ETF that maps either the S&P or Nasdaq 100. Consider using it, alongside a strategy like swapping when the leveraged fund falls below the 200 day moving average, or something similar.
@eb63067 What are the advantages of doing this, and what is the significance of falling below 200 day moving average?. I've not looked into leveraged funds etc so have no idea what to do with them.
@saachristian757 Well, when it falls below the moving average, switching to the normal fund preserves profits, and prevents excess losses. Its a strategy that has averaged about 20% when simulated on the S&P from 1912 onwards.
@eb63067 Maybe I'll look into it but I would have to be a pretty active investor for that right? And each time I sold my leverage/normal funds to switch would trigger a tax event right?
@saachristian757 It's not too active, if I'm not mistaken, you'd average 4 trades a year, but ya, it would trigger tax events if you're trading outside an PRSA account. Now there are ways about getting around those taxable events, spread betting being one of them ways, but you'd need to do your research before getting into it, as you'd need to find a platform that suits you (i.e no overnight charges on 0 leverage so you're essentially buying/selling shares)
