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Thank you so much for the useful information! Just to add a couple points here: 1) certain countries have signed their own tax treaty with the US and their WHT is 10%. 2) for estate tax planning purpose, the exemption is 60k for non US residents. For some people, it’s better to invest in VOO, wait until the balance reaches 60k, sell down the portfolio and buy CSPX. This way, you can stay in tiered dee structure, enjoy lower WHT/lower fees/lower spread, and minimize the impact of higher brokerage fee associated with trading UCITS since you’re buying in bulk. However, if your country levies CGT (capital gain tax) and you’re not trading in a tax advantaged account, it’s better to just buy CSPX.
Hello! Thanks for adding such insightful points to the conversation. It's great to see such thoughtful strategies being shared! You're absolutely right about considering the tax implications based on different treaties and the estate tax planning aspect. The strategy of investing in VOO up to a certain threshold and then switching to CSPX is an interesting approach to manage potential estate tax implications while also considering cost efficiency in trading. Also, your point about the capital gains tax (CGT) is spot on. For those in countries with CGT, especially without the benefit of a tax-advantaged account, opting for CSPX might indeed be a more straightforward and tax-efficient choice!
May I ask about the 60K exemption, is the 60K exemption based on the value of portfolio at time of death of the portfolio owner or based on the 60K value you "Invested" in regardless of how much the VOO portfolio grows in the long term?
So if you are investing 2000 usd a month from a no capital gains jurisdiction like Singapore, would you choose VOO or CSPX? What about from a jurisdiction like the UK which does have capital gains tax - VOO or CSPX?
Hi Ziet, thanks for the hard work. Quite less I comment on UA-cam. But ur content is really informative and useful for me. Thank you on e again. Can't wait for the upcoming video regarding the US Estate Tax for NRA.
Oh my god, such a well explained video! I just deposited my money into IBKR and had a dilemma in choosing between CSPX, VOO or VUAA until I came across this godsend video. Thank you so much, Ziet! Quick question, at the share price of CSPX and VOO today, which ETF would u advise me to DCA into if I have around 500 - 1000$ a month to invest for the next 10-15 years? Thank you once again for your help. Love all your knowledgeable videos 👍
Hey there! Thanks a ton for your kind words, it means a lot! 😊 Really glad my video could help clear up some of your confusion. Regarding your question: CSPX, VOO, and VUAA each have their own merits, and choosing one for DCA depends on several factors like your investment goals, risk appetite, and the market outlook. CSPX and VOO both track the S&P 500, but remember, CSPX is listed in LSE and could have some tax advantages for non-US investors like us hehe. With an investment plan of $500 - $1000/month over 10-15 years, you will be fine with either VOO or CSPX - they are almost fool proof!
Thanks Ziet ! Happy to see CSPX is still your top choice in 2022 :D 8:10 I didn't know the brokerage fee for CSPX is so much higher than VOO :( 4 to 6 times higher most of the time, so is CSPX still worth it even if it's only 15% Tax ? I'm confused bro.
Hi Marcoo and Enghuah, worth it or not, it's actually discussed and analysed in the video! In short, still worth it for the long run esp when you let the tax savings compound over time!
Hey mate. Great video u have there. I am confused on 1 question and Im pretty sure the answer will benefit others too. If i set up recurring investment in IBKR for lets say 1000usd into CSPX every months. Will the brokerage fee charge tier pricing 1.7usd or 4usd per trade? The reason why i ask is i found recurring investment is according to fixed price structure and i am confused because i am in tier pricing structure. Have you tested auto recurring investment and what is the charge per trade mate?
Hi Zeit. I live in UAE that has no tax treaty with US, but am Egyptian and Egypt has a tax treaty with US, in that tax which wth will apply? Country of origin or residence?
Hello Ziet. Terima kasih untuk video yang sgt mantap! :D Just I have been wondering for awhile, so if I DCA about RM240 ($54.30), I am not sure if it is too low but its all could do at the moment. It is well below $500 per month. Do I choose US domicile? Since I am a muslim so I would prefer a shariah compliance ETFs. So in this case it would be SPUS. However, I do plan to keep investing for 5-10 or maybe 15 years, at that point, would it be more favourable to choose a Ireland domicile ETF which would be ISDU. Any clarification would be awesome. Terima kasih hehe.
Terima kasih! For DCA with a small amount, US domicile ETFs like SPUS are a solid choice, especially for Shariah compliance. SPUS offers a good balance between ethical investing and growth.
i not sure whether i purchase a correct way because i have 0 knowledge in buying stocks etf and such. Basically in year 2022, i believe in may, i purchased $40000 sgd worth of CSPX, which is about 66 shares of CSPX. I dont intend to DCA as i prefer to lump sum. Currently that $40000 has not risen much and its only now at $44400 sgd. Basically $4.4k "profit". This initial 40k sgd that i placed into IBKR is just a very small percentage of my entire savings in which i placed in different instruments such as Tbills and other high yield accounts. If i am the type that just do lump sum investing, which tier should i be on? I might just pump in another say 50k sgd, not sure how much shares will that be.
so if can buy at least 2 shares each time, getting cspx is better, if not go for voo, is that right? but voo has 30% with holding tax when wanting to withdraw..right? sorry im so dumb with this
Thanks for all the sharing! Has been really impressed by the information in your video, they are valuable to my learning, and has since been following your channel. May I know if there is any way for US tax refund through IBKR on buying US ETF?
Hi Wu Kheng, as far as I am aware, there are no tax refunds unless there is double taxation on your dividends involved in the process, but you can always double check with IBKR incase I've missed anything!
Great Video Ziet- Cheers man- appreciate if you have some recommended stocks in the bloodbath to get some greener pastures for future to come- Hearty regards
Hi Kaushik, thanks for the nice words, i dont usually pick stocks based on the seasons, but for such circumstances, any stock with great cash flow and resilient business model like TSLA, AAPL, GOOG should weather through the storm well :)
So dividend withholding tax does not apply to CSPX because it does not pay dividends? And I'm confused about expense ratio. Is it not necessary to include expense ratio in the calculations?
Hi Ziet, buying cspx through Interactive broker. Should I: 1) fund account in sgd and settle trade in usd 2) convert sgd to usd. And settle trade in usd What do most people do?
I don't really get how it works when an ETF track an index that is from a different country given the difference in market hours. For example CSPX (an ETF listed on the London Stock Exchange) tracks the S&P 500 index (companies listed on US exchanges). LSE market opens hours before the US and will close while the US is still open. Wouldn't this create lots of tracking errors and arbitrage opportunities?
That's a really good question, hence why there is tracking error, plus even with the US ETF themselves only rebalance on a quarterly basis, not on a day-to-day basis, hence why the discrepancies are minimal!
Hi ziet, may i know how do we sell to cspx if I already have in voo? Is it sell all my voo holding first and then all buy in at cspx at the same time or DCA ? thank you very much
Hi Ziet. Love your video! Noticed you mention that only US ETF allow fractional buy. Is it still the vase with ibkr nowadays? Does Ireland etf not support fractional buy?
Hi Ziet, I have watched some of your videos and wanted to start investing in ETFs using DCA method. I want to ask if the dividend yield and expense ratio are quoted in percentage per year. If yes, I think the Ireland domiciled ETFs are better. The brokerage fees should not be taken into the consideration as the fee is very little if I only want to buy about 500 USD per month. The dividend yield is more important as your amount gets larger, the dividend is much bigger than the brokerage fees. You mentioned about CSPX is accumulating ETF. meaning it auto invest the dividend into buying ETF. Will I achieve the same or does it have any difference if I go for VUSD and invest back the dividend back myself during DCA? Another thing I want to check is the Estate Tax is it only applicable when the ETF holder dies and the value is above 60K? In that case better to avoid US ETFs as we don't know when we will die suddenly. Lastly, I think the more interesting part I want to ask is the spread. As CSPX the trading volume is much lower than VUSD and VOO. Roughly, how much more percentage will the spread be for CSPX. Is there anywhere I can check this out? Cause if the ETF value is high, it does matter a lot when we want to sell and cash out at old age. Currency risk I think all are the same as we deal in USD. I remember watching some of your videos, u mention IB got one of the best exchange rate but need to pay $2USD per exchange. Thanks
Hi Adam, sorry for the late reply, but if your concern is compounding your investments, then accumulating ETF would definitely suit you better (lesser trades, lesser fees involved). For Estate tax, yes, that is what I understood! Can't really recall the spread for CSPX, but its pretty decent as far as I know, you can check out on IBKR's order tab. And yes, IBKR charges 2 USD for each conversion, but if you convert in lump sum then the 2 USD shouldn't really matter!
Hi mate. Great video. I checked pwc page. I'm form the UK but based in Thailand. Excuse the possibly dumb question. The figures for Thai are '15 (8)' for dividends and '15 (11)' for interest. Does this mean I pay 15% to IRS and 8% to Thai tax authority?
hello ziet, new to this. im living in singapore, just open an ibkr account. i am planning to invest 1k usd, 700usd into cspx or voo and the remaining USD into growth stocks. this will stay consistent for the next 20 years. since im using ibkr, using the current price for both cspx & voo, could u advise me on which stock, cspx or voo i should invest into? assuming 700usd will be invested monthly. thank u 👍
Hi, Ziet! Very usefull video, congrats! I'm from Poland, I'd like to compare SXR8 vs CSPX and VUAA. Does IBKR have same fees for the GB and EU.? If I buy SXR8 in €, I'll pay same fees to IBKR + currency exchange from € to $(usd is the base of the etf). Is it correct? If it is, it's better to buy CSPX or VUAA directly in usd. Correct?
Hi there! The fees varies according to country yeah, you can check it out here: www.interactivebrokers.com/en/pricing/commissions-stocks-europe.php?re=europe Depending on your funding currency, it will always be best to buy in it to reduce forex losses! SXR8 is traded in EURO yeah, not USD
The only question i have with cspx is that it has very low trading volume and sometimes there is very little activity in it's market compared to it's US counterparts. How can i be sure that by the time that i want to sell my stock there is someone who wants to buy it. It can be a case of no one wants to buy it and you can't cash out. Do you have data or proof that it can be done?
It's average trading volume is 121.4 K shares per day, as long as you dont place a limit sell order too far off from the market price, i dont see why not you aren't able to sell off your shares
Ziet, would you consider "Invesco S&P 500 UCITS ETF" (SPXS)? the expense ratio is cheaper than CSPX and higher return? It's the cheapest ETF tracking S&P 500. Would like to get your view it this? Thanks
Hi Ziet, awesome video, thanks for the effort taken to make it. Just wondering, if CSPX is accumulative, what would happen if my investment is not big enough and the dividends received is not even enough to buy 1 share?(since fractional share system is not there)
Hi there, sorry for the late reply. Since CSPX is an accumulating (or reinvesting) ETF, dividends are reinvested automatically to purchase more shares of the ETF itself, which means the value of your existing shares increases rather than you receiving cash dividends (into your IBKR account). In the case where dividends are reinvested and the amount isn't enough to buy a whole new share, it's not something you'd need to worry about with accumulating ETFs. The fund handles all that internally, and your investment value will reflect the reinvestment even if it's just a fraction of a share. So, even with small investment amounts, you're still benefiting from the compounding effect over time without needing to manually reinvest dividends or worry about buying fractional shares.\ Hope this helps!
Hi Ziet, thanks for sharing all the information. If I am a Non-US resident and invest in VOO with Interactive Broker, will I own the underlying asset to the VOO? Cheers
Hi Petr, you will be owning the shares issued by the Vanguard fund, which is a fund that tracks the S&P500 index by holding the physical units of those 500 stocks yeah :)
Trade Station Global is awesome. Only $5 on US stocks great for investing and day training. MUCH better platform than IBK. I'd rather pay a little more for the quick fast platform with awesome charting.
Hello, thank you for your video. I read in many websites and watched a few videos on youtube and they all said the tax return for investing in ETFs in Ireland is 41%. Can you please explain this difference from your number of 15%?
Hi Minh, that 41% is probably applicable to Irish residents themselves! 15% is applicable for most non-US residents with no tax treaty with US, can check out this forum: www.google.com/search?client=safari&rls=en&q=bogleheadsi+reland+domciled+etf&ie=UTF-8&oe=UTF-8
Hi Vincent, definitely, you are paying USD 1.70 fixed regardless of 1 CSPX, 2 CSPX or 3 CSPX! But then again, if you've watched this video, the difference is really marginal!
Hi there, you can check on PWC’s website on whether Egypt has tax treaty with the US; and Yes, if there is tax treaty in place, you are better off with VOO and other US ETFs! (Although you can still do with Irish funds if you want accumulating ETFs)
Hi Tiago, i believe you cant because of EU's PRIIP regulation - might have to explore european ETFs that mirrors their US counterparts. can try justetf.com for that!
@@ZietInvests Hey Ziet, thanks for the reply. Im just a little bit concerned over the trading volume for VUAA cos it's much lower. I plan to DCA over long term though. Not sure if it matters.
Hi ziet, I hope you're doing well. I received an email from ibkr about a week ago saying they will allow fraction shares on the European stocks soon, did you hear about it? If it's true do you know how long will it take them to implement it.
I can’t execute a mkt order for cspx on ibkr. I put in the order after Lse trading hour. The otder status shown as “pre submitted “. How can I buy cspx immediately in ibkr?
Thanks for your explanation. Do you know an S&P 500 ETF accumulated based on the US available on IB ? I ask the question because I live in a country (Switzerland) with 15% tax agreement with US. So for me it is better VOO but it's distributive, I am looking for a accumulated. Thanks
I didn't understand that tax note on us etfs ,is it applicable also for Ireland domicile etfs ? I read somewhere that estate tax is a transfer of assets in the us from a deceased person to his heir And to avoid this tax you should invest in a foreign trust even if it holds us securities ,my question is an Ireland domicile etf a foreign trust in this case
Hi persie, depends on which you were referring, they both should have different tax regime yeah, not to be confused. Re your question on estate tax, that is correct, Ireland ETF (fund) is technically a foreign fund since it is not domiciled in US, so it is not subjected to the US Estate Tax
Hi Ziet, Thank you for always sharing your investment knowledge! Is there a way to share the template or the formulas you used for the spreadsheet comparison between VOO and CSPX? I want to learn more about it and try with other ETFs. I seem to not be able to replicate the same values as you do from my spreadsheet, especially measuring an approximate dividend from an accumulating fund like CSPX
For example, is it better for non-us resident buy a few shares of VUAA per month or save money and buy 1 share of CSPX every two months?. And if the plan is to hold it at least min 10+ years fees should not worry me if i got it right?
You are right, it doesn't really matter at the big picture, consistent investing + holding through financial downturn is more important than those small costs :)
No problem! It's still a solid buy and the cost saving will crystallise after a longer period of time, so no sweat! (this is just a rough guide, and hopefully it does not distort your investment schedule!)
cspx listed in London exchange, the trade hour is different from US. Can I say that the time we able to trade live is the intersection time of opening hour between us and uk which in this case it is 230pm to 430pm UK time. After 430pm UK time, we are unable to trade anymore eventhough us there market still open?
Hi there, according to KenTrade, the following are the LSE trading hours converted to Malaysia time: - 4:00 pm - 12:30 am - 3:30 pm - 11:30 pm (during Daylight Saving Not to be mixed UK with US because they operate a totally different trading hours, and are totally independent of each other. That said, we can only trade extended hours (pre-market, after hours) with the US market yeah, not applicable for UK market. Hope this clarifies!
📌Start investing with Interactive Brokers → ziet.link/17-know-more-about-IBKR
By tapping the above link, you are supporting the channel for FREE and it helps me to create more and better videos for you! Thank you so much!🥰
Thank you so much for the useful information! Just to add a couple points here: 1) certain countries have signed their own tax treaty with the US and their WHT is 10%. 2) for estate tax planning purpose, the exemption is 60k for non US residents. For some people, it’s better to invest in VOO, wait until the balance reaches 60k, sell down the portfolio and buy CSPX. This way, you can stay in tiered dee structure, enjoy lower WHT/lower fees/lower spread, and minimize the impact of higher brokerage fee associated with trading UCITS since you’re buying in bulk. However, if your country levies CGT (capital gain tax) and you’re not trading in a tax advantaged account, it’s better to just buy CSPX.
Hello! Thanks for adding such insightful points to the conversation. It's great to see such thoughtful strategies being shared! You're absolutely right about considering the tax implications based on different treaties and the estate tax planning aspect. The strategy of investing in VOO up to a certain threshold and then switching to CSPX is an interesting approach to manage potential estate tax implications while also considering cost efficiency in trading.
Also, your point about the capital gains tax (CGT) is spot on. For those in countries with CGT, especially without the benefit of a tax-advantaged account, opting for CSPX might indeed be a more straightforward and tax-efficient choice!
May I ask about the 60K exemption, is the 60K exemption based on the value of portfolio at time of death of the portfolio owner or based on the 60K value you "Invested" in regardless of how much the VOO portfolio grows in the long term?
So if you are investing 2000 usd a month from a no capital gains jurisdiction like Singapore, would you choose VOO or CSPX? What about from a jurisdiction like the UK which does have capital gains tax - VOO or CSPX?
Thanks man, I was planning to calculate this by myself but I kept procrastinating lol great vid
Haha I'm glad it helped! If you happen to find the time to calculate it, do share with us your finding!
Good stuff on the super detailed research/simulations! Appreciate the effort put into this video!
Thank you so much for your nice comment!
Thanks. I was still wondering how to invest in cspx as a newbie. Ur video comes in timely!
Hehe awesome! Glad it helped!!😁😁
Hi Ziet, thanks for the hard work. Quite less I comment on UA-cam. But ur content is really informative and useful for me. Thank you on e again.
Can't wait for the upcoming video regarding the US Estate Tax for NRA.
Thank you so much Sophia! So glad to know that you are enjoying my videos 🥰🥰
Clear and straightforward, you are my hero! More on point 4 about taxes, please!
This is such a legend video. Helped a lot!!
Hehe im glad you liked it ;P thanks for the nice comment!
Good job! clear a lot of my questions which one to buy.
I’m glad this helped!😁
Great video, this question was in my mind long ago
I'm glad this helped!😊
Wow! Thank you for the clear explanation!
Watched most of your videos rly help alot! Thank u so much!!!
Hehe glad you found them helpful! 🥰
Thanks!! This is awesome
I'm glad you liked it!🥰
Thank you for the insightful video, if i am planning to save up and buy 5 shares of VUAA every month, should i go for the Tiered pricing structure?
Hi, I believe Tiered would be the way to go!
@@ZietInvests Do you still recommend ark invest ?
Oh my god, such a well explained video! I just deposited my money into IBKR and had a dilemma in choosing between CSPX, VOO or VUAA until I came across this godsend video. Thank you so much, Ziet! Quick question, at the share price of CSPX and VOO today, which ETF would u advise me to DCA into if I have around 500 - 1000$ a month to invest for the next 10-15 years? Thank you once again for your help. Love all your knowledgeable videos 👍
Hey there! Thanks a ton for your kind words, it means a lot! 😊 Really glad my video could help clear up some of your confusion.
Regarding your question: CSPX, VOO, and VUAA each have their own merits, and choosing one for DCA depends on several factors like your investment goals, risk appetite, and the market outlook. CSPX and VOO both track the S&P 500, but remember, CSPX is listed in LSE and could have some tax advantages for non-US investors like us hehe.
With an investment plan of $500 - $1000/month over 10-15 years, you will be fine with either VOO or CSPX - they are almost fool proof!
Thanks Ziet ! Happy to see CSPX is still your top choice in 2022 :D
8:10 I didn't know the brokerage fee for CSPX is so much higher than VOO :( 4 to 6 times higher most of the time, so is CSPX still worth it even if it's only 15% Tax ? I'm confused bro.
I have d same question.appreciate very much a reply.thank u.
Hi Marcoo and Enghuah, worth it or not, it's actually discussed and analysed in the video! In short, still worth it for the long run esp when you let the tax savings compound over time!
Hey mate. Great video u have there. I am confused on 1 question and Im pretty sure the answer will benefit others too.
If i set up recurring investment in IBKR for lets say 1000usd into CSPX every months. Will the brokerage fee charge tier pricing 1.7usd or 4usd per trade?
The reason why i ask is i found recurring investment is according to fixed price structure and i am confused because i am in tier pricing structure.
Have you tested auto recurring investment and what is the charge per trade mate?
Hello, thanks for the video, super interesing. Could you share those tables?
Hi robert, let me figure out how to do it for everyone!
Hi Zeit. I live in UAE that has no tax treaty with US, but am Egyptian and Egypt has a tax treaty with US, in that tax which wth will apply? Country of origin or residence?
Hello Ziet. Terima kasih untuk video yang sgt mantap! :D Just I have been wondering for awhile, so if I DCA about RM240 ($54.30), I am not sure if it is too low but its all could do at the moment. It is well below $500 per month. Do I choose US domicile? Since I am a muslim so I would prefer a shariah compliance ETFs. So in this case it would be SPUS. However, I do plan to keep investing for 5-10 or maybe 15 years, at that point, would it be more favourable to choose a Ireland domicile ETF which would be ISDU. Any clarification would be awesome. Terima kasih hehe.
Terima kasih! For DCA with a small amount, US domicile ETFs like SPUS are a solid choice, especially for Shariah compliance. SPUS offers a good balance between ethical investing and growth.
Great video, thanks
Glad you liked it! 😄
Im hell afraid of Estate Tax, it's scary. Have you researched well enough to say that holding Irish ETFs (which holds S&P500) will circumvent it?
Doing a vid on taxes as we speak!
Please keep making videos!
I'm on it!! Thank you for your support!
i not sure whether i purchase a correct way because i have 0 knowledge in buying stocks etf and such. Basically in year 2022, i believe in may, i purchased $40000 sgd worth of CSPX, which is about 66 shares of CSPX. I dont intend to DCA as i prefer to lump sum. Currently that $40000 has not risen much and its only now at $44400 sgd. Basically $4.4k "profit". This initial 40k sgd that i placed into IBKR is just a very small percentage of my entire savings in which i placed in different instruments such as Tbills and other high yield accounts. If i am the type that just do lump sum investing, which tier should i be on? I might just pump in another say 50k sgd, not sure how much shares will that be.
so if can buy at least 2 shares each time, getting cspx is better, if not go for voo, is that right? but voo has 30% with holding tax when wanting to withdraw..right? sorry im so dumb with this
Marginal difference, but yes, your understanding is correct!
Thanks for all the sharing! Has been really impressed by the information in your video, they are valuable to my learning, and has since been following your channel.
May I know if there is any way for US tax refund through IBKR on buying US ETF?
Hi Wu Kheng, as far as I am aware, there are no tax refunds unless there is double taxation on your dividends involved in the process, but you can always double check with IBKR incase I've missed anything!
I noticed on a good day, voo rises more than cspx, so how do i know which one gives better capital appreciation
idk if you read comments on older videos but i just found out cspx now can be bought as fractional shares. perhaps an update on this video?
Great Video Ziet- Cheers man- appreciate if you have some recommended stocks in the bloodbath to get some greener pastures for future to come- Hearty regards
Hi Kaushik, thanks for the nice words, i dont usually pick stocks based on the seasons, but for such circumstances, any stock with great cash flow and resilient business model like TSLA, AAPL, GOOG should weather through the storm well :)
@@ZietInvests Thanks for ur reply
So dividend withholding tax does not apply to CSPX because it does not pay dividends? And I'm confused about expense ratio. Is it not necessary to include expense ratio in the calculations?
What about fractioned shares? What is cheaper then? I plan to invest 100 USD every month
In that case, US ETFs would do you better - VOO!
You have removed us from darkness!
haha that is a huge compliment!! but ill take it
@@ZietInvests many countries have a tax treaty with the UK as well. Can you make videos on that if someone doesn't want to chose Ireland
Hi Ziet, buying cspx through Interactive broker. Should I:
1) fund account in sgd and settle trade in usd
2) convert sgd to usd. And settle trade in usd
What do most people do?
Hi, you can only settle trade for CSPX in USD yea since its a USD product (so you need to convert your SGD to USD first)
I don't really get how it works when an ETF track an index that is from a different country given the difference in market hours. For example CSPX (an ETF listed on the London Stock Exchange) tracks the S&P 500 index (companies listed on US exchanges). LSE market opens hours before the US and will close while the US is still open. Wouldn't this create lots of tracking errors and arbitrage opportunities?
That's a really good question, hence why there is tracking error, plus even with the US ETF themselves only rebalance on a quarterly basis, not on a day-to-day basis, hence why the discrepancies are minimal!
Hi ziet, may i know how do we sell to cspx if I already have in voo? Is it sell all my voo holding first and then all buy in at cspx at the same time or DCA ? thank you very much
Hi Ziet. Love your video! Noticed you mention that only US ETF allow fractional buy. Is it still the vase with ibkr nowadays? Does Ireland etf not support fractional buy?
Hi Ziet,
I have watched some of your videos and wanted to start investing in ETFs using DCA method. I want to ask if the dividend yield and expense ratio are quoted in percentage per year. If yes, I think the Ireland domiciled ETFs are better. The brokerage fees should not be taken into the consideration as the fee is very little if I only want to buy about 500 USD per month. The dividend yield is more important as your amount gets larger, the dividend is much bigger than the brokerage fees.
You mentioned about CSPX is accumulating ETF. meaning it auto invest the dividend into buying ETF. Will I achieve the same or does it have any difference if I go for VUSD and invest back the dividend back myself during DCA?
Another thing I want to check is the Estate Tax is it only applicable when the ETF holder dies and the value is above 60K? In that case better to avoid US ETFs as we don't know when we will die suddenly. Lastly, I think the more interesting part I want to ask is the spread. As CSPX the trading volume is much lower than VUSD and VOO. Roughly, how much more percentage will the spread be for CSPX. Is there anywhere I can check this out? Cause if the ETF value is high, it does matter a lot when we want to sell and cash out at old age. Currency risk I think all are the same as we deal in USD. I remember watching some of your videos, u mention IB got one of the best exchange rate but need to pay $2USD per exchange. Thanks
Hi Adam, sorry for the late reply, but if your concern is compounding your investments, then accumulating ETF would definitely suit you better (lesser trades, lesser fees involved).
For Estate tax, yes, that is what I understood! Can't really recall the spread for CSPX, but its pretty decent as far as I know, you can check out on IBKR's order tab.
And yes, IBKR charges 2 USD for each conversion, but if you convert in lump sum then the 2 USD shouldn't really matter!
Yes more content on cspx pls. But just to clarify, u mean it is better to buy minimum of 2 shares of cspx per trade to save cost, is it?
Hi JT, that is correct, as the brokerage fee for LSE is 4x more than US ETF, hence the analysis.
So he means it’s either 2 shares of CSPX a month or 500 dollars worth of VOO shares right?
@anyone will Investment Broker start deducting monthly maintenance fee from my account after opening and still deciding when to invest?
Hi Ziet
How to trade options (script name) covered call for CSPX
Hi mate. Great video. I checked pwc page. I'm form the UK but based in Thailand. Excuse the possibly dumb question.
The figures for Thai are '15 (8)' for dividends and '15 (11)' for interest. Does this mean I pay 15% to IRS and 8% to Thai tax authority?
hello ziet, new to this. im living in singapore, just open an ibkr account. i am planning to invest 1k usd, 700usd into cspx or voo and the remaining USD into growth stocks. this will stay consistent for the next 20 years.
since im using ibkr, using the current price for both cspx & voo, could u advise me on which stock, cspx or voo i should invest into? assuming 700usd will be invested monthly. thank u 👍
Hi, Ziet! Very usefull video, congrats! I'm from Poland, I'd like to compare SXR8 vs CSPX and VUAA. Does IBKR have same fees for the GB and EU.? If I buy SXR8 in €, I'll pay same fees to IBKR + currency exchange from € to $(usd is the base of the etf). Is it correct? If it is, it's better to buy CSPX or VUAA directly in usd. Correct?
Hi there! The fees varies according to country yeah, you can check it out here: www.interactivebrokers.com/en/pricing/commissions-stocks-europe.php?re=europe
Depending on your funding currency, it will always be best to buy in it to reduce forex losses! SXR8 is traded in EURO yeah, not USD
The only question i have with cspx is that it has very low trading volume and sometimes there is very little activity in it's market compared to it's US counterparts. How can i be sure that by the time that i want to sell my stock there is someone who wants to buy it. It can be a case of no one wants to buy it and you can't cash out. Do you have data or proof that it can be done?
It's average trading volume is 121.4 K shares per day, as long as you dont place a limit sell order too far off from the market price, i dont see why not you aren't able to sell off your shares
How about in comparison with moomoo?
Is it true that for recurring investments into VUAA for eg. the comission and fees are lower?
Terima kasih kongsi2kan info
Sama sama!
Ziet, would you consider "Invesco S&P 500 UCITS ETF" (SPXS)? the expense ratio is cheaper than CSPX and higher return? It's the cheapest ETF tracking S&P 500. Would like to get your view it this? Thanks
Hi Ziet, awesome video, thanks for the effort taken to make it.
Just wondering, if CSPX is accumulative, what would happen if my investment is not big enough and the dividends received is not even enough to buy 1 share?(since fractional share system is not there)
Hi there, sorry for the late reply.
Since CSPX is an accumulating (or reinvesting) ETF, dividends are reinvested automatically to purchase more shares of the ETF itself, which means the value of your existing shares increases rather than you receiving cash dividends (into your IBKR account).
In the case where dividends are reinvested and the amount isn't enough to buy a whole new share, it's not something you'd need to worry about with accumulating ETFs. The fund handles all that internally, and your investment value will reflect the reinvestment even if it's just a fraction of a share. So, even with small investment amounts, you're still benefiting from the compounding effect over time without needing to manually reinvest dividends or worry about buying fractional shares.\
Hope this helps!
Hi Ziet, thanks for sharing all the information. If I am a Non-US resident and invest in VOO with Interactive Broker, will I own the underlying asset to the VOO? Cheers
Hi Petr, you will be owning the shares issued by the Vanguard fund, which is a fund that tracks the S&P500 index by holding the physical units of those 500 stocks yeah :)
Thank for reply Ziet, Just wanna make sure because on eToro can buy VOO only as CFD.
Hi, guys. As I know, Non US residents can't buy US etf like SPY or VOO with IBKR.
Trade Station Global is awesome. Only $5 on US stocks great for investing and day training. MUCH better platform than IBK. I'd rather pay a little more for the quick fast platform with awesome charting.
To each of their own! Both are great in my opinion 😊
Hello, thank you for your video. I read in many websites and watched a few videos on youtube and they all said the tax return for investing in ETFs in Ireland is 41%. Can you please explain this difference from your number of 15%?
Hi Minh, that 41% is probably applicable to Irish residents themselves! 15% is applicable for most non-US residents with no tax treaty with US, can check out this forum: www.google.com/search?client=safari&rls=en&q=bogleheadsi+reland+domciled+etf&ie=UTF-8&oe=UTF-8
@@ZietInvests thank you for your quick response. That made a lot of sense!
Hi bro,
Have you ever considered IVV ASX?
Wanted know what's yield Csp1... Acc). Can't find anywhere google
There's no dividend yield because they are accumulating, not distributing any cash dividend!
Hi Ziet, thanks for the comparison. Would I save more if I buy 2 CSPX once every 2 month instead of 1 share per month?
Hi Vincent, definitely, you are paying USD 1.70 fixed regardless of 1 CSPX, 2 CSPX or 3 CSPX!
But then again, if you've watched this video, the difference is really marginal!
What is the minimum amount you should DCA into these ETFs?
There is no minimum to be exact, but I would ideally do at least >400 USD per trade
Ziet, would you consider to review SPYL.L accumulating etf?
Hi ziet how can I know if Egypt had tax treaty with US
And if it has VOO would be a better option right ?
Hi there, you can check on PWC’s website on whether Egypt has tax treaty with the US; and Yes, if there is tax treaty in place, you are better off with VOO and other US ETFs! (Although you can still do with Irish funds if you want accumulating ETFs)
Being in EU can you buy VOO?
Hi Tiago, i believe you cant because of EU's PRIIP regulation - might have to explore european ETFs that mirrors their US counterparts. can try justetf.com for that!
Hi Ziet, what about VUAA vs CSPX? Both are tracking the same index and are Ireland-domiciled. Thanks!
Hi Joanne, it should be more or less the same, tiered structure would still work as fine - you can try "preview" to see the commission too!
@@ZietInvests Hey Ziet, thanks for the reply. Im just a little bit concerned over the trading volume for VUAA cos it's much lower. I plan to DCA over long term though. Not sure if it matters.
Hi ziet, I hope you're doing well. I received an email from ibkr about a week ago saying they will allow fraction shares on the European stocks soon, did you hear about it? If it's true do you know how long will it take them to implement it.
Hi Ali, yes I did hear about it from reddit forum but I have not yet gotten it on my account - will definitely update you guys when I got it!
Hi Ziet, if I live in Sweden which one should I choose? Voo or cspx?
Hi, i believe Sweden has tax treaty with US, hence VOO (US ETF) would do just fine - do check with your local tax advisor tho!
I can’t execute a mkt order for cspx on ibkr. I put in the order after Lse trading hour.
The otder status shown as “pre submitted “.
How can I buy cspx immediately in ibkr?
You can wait for LSE to open market then submit a market order
hii ziet is it still the same in 2024?
Yes more or less! But there's fractional shares for LSE ETFs now!
Thanks for your explanation.
Do you know an S&P 500 ETF accumulated based on the US available on IB ? I ask the question because I live in a country (Switzerland) with 15% tax agreement with US. So for me it is better VOO but it's distributive, I am looking for a accumulated. Thanks
Hi Artur, all US ETFs are distributing in nature, you can only find Acc in european ETFs
Does Interactive brokers have VUAA accumulating? What are the fees?
Hi Chris, yes they do! The fees to buy them should be around 1.5 GBP per trade ;)
I didn't understand that tax note on us etfs ,is it applicable also for Ireland domicile etfs ?
I read somewhere that estate tax is a transfer of assets in the us from a deceased person to his heir
And to avoid this tax you should invest in a foreign trust even if it holds us securities ,my question is an Ireland domicile etf a foreign trust in this case
Hi persie, depends on which you were referring, they both should have different tax regime yeah, not to be confused.
Re your question on estate tax, that is correct, Ireland ETF (fund) is technically a foreign fund since it is not domiciled in US, so it is not subjected to the US Estate Tax
Hi Ziet,
Thank you for always sharing your investment knowledge!
Is there a way to share the template or the formulas you used for the spreadsheet comparison between VOO and CSPX? I want to learn more about it and try with other ETFs. I seem to not be able to replicate the same values as you do from my spreadsheet, especially measuring an approximate dividend from an accumulating fund like CSPX
Hi, i will have to dig for it but should be able to find haha - feel free to drop me an email at hello@ziet.co
Hi do you still have the spreadsheet for this?@@ZietInvests
For example, is it better for non-us resident buy a few shares of VUAA per month or save money and buy 1 share of CSPX every two months?. And if the plan is to hold it at least min 10+ years fees should not worry me if i got it right?
You are right, it doesn't really matter at the big picture, consistent investing + holding through financial downturn is more important than those small costs :)
@@ZietInvests it is pretty weird, right now cspx is around 410usd, if i want to buy 2 of those on ib i need to have about 870usd on my account.
I thought there's a min USD$2 conversion fee? Please clarify
Yes there is!
@@ZietInvests so referring to your pricing structure for cspx. why is the exchange column not reflected as USD$2?
ziet,y i cant buy fractional shares for CSPX?
Hi, thats because CSPX is listed on london stock exchange (United Kingdom). Fractional shares only available for US Stocks and ETFs ya
@@ZietInvests I see. Okok thanks!
Hey Ziet, does it make any difference living in UAE?
Gotta check if UAE has tax treaty with the US!
@@ZietInvests Hi Ziet, is CSPX still considered a US-domiciled ETF even though it's in Ireland?
this is very helpful. Thank you
You're most welcome 🥰
Great findings!
Thank you Farid!😁
I wish i could have seen this video before, i bought like 7 CSPX one by one in tiered ☠☠
No problem! It's still a solid buy and the cost saving will crystallise after a longer period of time, so no sweat! (this is just a rough guide, and hopefully it does not distort your investment schedule!)
cspx listed in London exchange, the trade hour is different from US. Can I say that the time we able to trade live is the intersection time of opening hour between us and uk which in this case it is 230pm to 430pm UK time. After 430pm UK time, we are unable to trade anymore eventhough us there market still open?
Hi there, according to KenTrade, the following are the LSE trading hours converted to Malaysia time:
- 4:00 pm - 12:30 am
- 3:30 pm - 11:30 pm (during Daylight Saving
Not to be mixed UK with US because they operate a totally different trading hours, and are totally independent of each other.
That said, we can only trade extended hours (pre-market, after hours) with the US market yeah, not applicable for UK market. Hope this clarifies!
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Haha thank you so much for dropping by!!