Best Dividend ETFs for Non-US Residents (Pay Less Tax!)

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Күн бұрын

Best Dividend ETFs for Non US Residents (Pay Less Tax!) 🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ www.interactivebrokers.com/mk...
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ www.interactivebrokers.com/mk...
⬇️ Timestamps:
0:00 → Introduction
0:16 → How to reduce tax?
3:53 → Best Dividend ETFs
4:21 → United States
7:50 → How to Buy Ireland-Domiciled ETFs
8:33 → Developed Market
10:24 → Emerging Market
12:14 → All Market ETFs
13:55 → Conclusion
Let's find out the best Dividend ETFs specifically curated for non-US investors aiming to maximize tax savings! Our extensive research has brought a list of eight Ireland-domiciled ETFs to the table, offering a tax-efficient alternative to US-domiciled funds like SPY, VOO, and QQQ. The guide explains the significance of domicile in reducing dividend withholding taxes, particularly for investors from countries without a US tax treaty.
So, what's the benefits of Ireland-domiciled funds? Basically, it leverages on Ireland's favorable tax treaty with the US to reduce withholding tax from 30% to 15%. We then categorizes the top ETFs into four distinct markets: United States, Developed Markets, Emerging Markets, and All Market ETFs, providing detailed analyses of each fund's performance, expense ratios, and dividend yields.
For the US market, we compare FUSD, UDVD, and HDLV, highlighting their investment focuses, top holdings, and financial metrics. FUSD emerges as a standout choice due to its balance of reasonable yield, low expenses, and strong historical returns. The Developed Market segment contrasts FGQI and WQDV, with FGQI taking the lead for its consistent performance and longer track record. In the Emerging Market category, IEDY and EMHD are examined, with EMHD preferred for its better returns and lower fees despite a slightly lower dividend yield. We also talked about VHYD from Vanguard, an All Market ETF offering ultimate diversification with moderate performance.
Finally, it is important to look at the overall returns, not just dividends, and you should to align your choices with your risk tolerance and investment goals.
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Disclaimer: This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.

Пікірлер: 84

@zhanart6563 16 күн бұрын

Hello from Kazakhstan! Ziet, you did a great job. I am writing just to say how much I appreciate the analysis you made and the time you saved for all of us watching you ) Wish you all the best in investing and broadcasting.

@ZietInvests 16 күн бұрын

Awww thank you so much my friend! Do check out our other ETF videos❤️ Much love to Kazakhstan from Malaysia!

@purpletulip1688 5 ай бұрын

Thanks for the great research!!!

@ZietInvests 3 ай бұрын

Our pleasure!

@danielsilva7476 19 күн бұрын

Congrats! Your explanation was really great! Regards from Brazil.

@ZietInvests 16 күн бұрын

Thank you very much!

@BrittanieKilchoer 4 ай бұрын

Thank you so much for your explanations!! So does that mean if a country has a tax treaty with the US, it does not matter which ETF is bought? Because it's a 15% flat rate no matter what (if I understood correctly)

@rafelgiralt Ай бұрын

Hi Ziet, great video! What about the capital gains taxes? Don't you have to pay capital gains in Ireland for those Ireland domiciled ETFs? Could you please comment on exemptions on capital gains for those ETFs... If you buy an accumulating ETF in Ireland (so you don't suffer withholding tax), would it be fair to say that will have to pay capital gains in Ireland when you sell your position? or such gains are exempt in Ireland but taxed in your home countyr? Thank you!

@ZietInvests 6 ай бұрын

What’s your favourite dividend ETF? Share with us down below!

@joe818 6 ай бұрын

schd

@ZietInvests 6 ай бұрын

@@joe818 solid pick!

@seanmumford2358 2 ай бұрын

Is CSPX good?

@agoogleuser9025 2 ай бұрын

up, also looking into CSPX from your past videos but recently not listed? 🥹

@areebachewa8318 4 ай бұрын

Hi Ziet Do you think you can make a video of how compounding interest work on S&P 500 ETF on monthly investing on VOO for 10 years

@veryshuai6095 6 ай бұрын

Hi Ziet! I just want to say thank you for providing such a quality content video! Ziet I got some question, I had watched some of your videos regarding S&P500, is it using Wise & CIMB SG to fund IBKR still the cheapest way? Besides that, do you invest in accumulating S&P500 such as CSPX or VUAA? or you are investing in dividend ETF?

@ZietInvests 6 ай бұрын

Hello! Either way should be low-cost enough to fund IBKR - with the CIMB SG method cheaper by a little bit, but could be a hassle to setup for starters! I personally don't have any exposure to any ETFs at this moment yet as i'm taking higher risk for higher reward with individual stocks (can refer my portfolio on instagram)! Hope this helps ;)

@angell863 6 ай бұрын

Thanks for the informative content, Ziet! What do you think about Malaysian investing in Singapore REITs or stocks to build a dividend portfolio? Would love to hear your opinion on this!

@ZietInvests 6 ай бұрын

No harm making it as part of your portfolio! Good geographical diversification + consistent dividend payouts

@persieprince9345 6 ай бұрын

Thanks ziet ,i like fusd for now Another one you missed is the famous dgrw in the us is the same ticker for the Ireland domicile one

@ZietInvests 6 ай бұрын

Hello persie, thank you for chipping in! Just to note DGRW is a U.S.-domiciled ETF ya. We're covering ireland domiciled ones in this video ^^

@persieprince9345 6 ай бұрын

@@ZietInvestsi know i mean they listed dgrw also on lse London exchange under the same ticker

@agoogleuser9025 2 ай бұрын

The Philippines was on the list, means I should just go for VOO or try Irish-domiciled CSPX?

@Johann75 6 ай бұрын

Good Job Ziet! What is the tax for the US domicile ETFs with exposure ex US? EM, World ex US, etc...

@ZietInvests 6 ай бұрын

Hi Johann! Taxes on U.S. domiciled ETFs with international exposure can be (very very) complex. You might face U.S. withholding tax on dividends, possibly reduced by tax treaties, and then there's also the potential to claim a foreign tax credit for taxes the ETF pays abroad. So to answer your question - i don't have the exact figure coz it might be blended and differ from 1 ETF to another :p Hope this clarifies!

@xuedalong Ай бұрын

How about SEDY for emerging market dividend ETF?

@depashthapa3163 2 ай бұрын

I have a question, like i saw their dividend ratios, divided growth and also annualised returns...i mean thats what you mostly look at for dividend investment right. What i noticed was even if SCHD or DGRO ETFs has WHT of 30% for non us resident, it still outperforms all the etf mentioned above right. So why not just buy the us based etfs?

@DisinfoWatch Ай бұрын

UCITS dividend etf are 2%~ making it similar to buying SCHD. Alternatively, buying shares from Singapore 3 Banks pay 5% tax free. Choose wisely!

@maximus6884 5 ай бұрын

Does invesco truly have those assets under their belt?

@sanchotolentino350 6 ай бұрын

Hi Ziet, very informative video, especially for Non US residents. A bit OT but here goes: Regardless of whether you invest in US or non-US domiciled ETFs Are these withholding taxes applied to dividends even if you reinvest them into the ETF?

@ZietInvests 6 ай бұрын

Hey there! Glad you found the video informative. 😊 To answer your question, yes, withholding taxes on dividends typically apply even if you choose to reinvest them back into the ETF (as you are taxed at the fund level, even before you get the dividend) - The tax is deducted before the reinvestment!

@samt2869 6 ай бұрын

Hello Ziet. May I know what do you take into considerations to decide when is a good time to buy the ETFs and how much to put in?

@ZietInvests 6 ай бұрын

Hi sam, there's no straight forward answer to that coz we need to consider a few factors: how much to invest, overall market conditions, personal financial situation, investment goals etc. Personally, I prefer a regular investment approach, known as dollar-cost averaging, to spread out the risk over time! Check out more in this video: kzfaq.info/get/bejne/Y76FZ5p80dW5Z6c.htmlsi=UiLgzqzz17j_LXK5

@nurcahyonugroho1492 4 ай бұрын

Hi Ziet, I have a question. I'm an Indonesian working in Malaysia. I checked Indonesia has US tax treaty. I registered InteractiveBrokers in Malaysia, if I made transaction in Malaysia to buy US ETFs, will my dividend withholding tax is 15% or 30%? Please suggest. Thanks.

@kenjimiao967 3 ай бұрын

I am a Malaysian , I am quite into dividend ETF like JPEQ but the 30% US non- citizen witholding tax stop me. Any advice? I want to have ETF for paying divdend without this taxes

@Vozd1990 2 ай бұрын

if i dont transfer dividend from my broker (Interactive Broker) to mu bank account how they will tax it?

@Kappacino1010 6 ай бұрын

Do we need to put the Dividend Election options under Trading settings to Reinvest for dividend ETFs? Talking about IBKR platform

@ZietInvests 6 ай бұрын

It's up to what you want to do with your dividends! If you choose not to set it, you'll receive dividends as cash, but do note that only US and Canada listed stocks are eligible for Dividend Reinvestment. If you want to look at the US listed dividend stocks, can check it out in this video :)) kzfaq.info/get/bejne/iKehgt2ls8_Peok.html

@jackyinhere 6 ай бұрын

Hi Ziet! If I can have afford higher risk, is CSPX much suitable? But does it not also track stable companies (which gives high dividend) like AAPL and MSFT like FUSD?

@ZietInvests 6 ай бұрын

CSPX tracks the overall performance of the S&P 500, not specifically targeting high-dividend stocks, it's a solid ETF if you wish to hold top 500 companies in the US! In facts, AAPL and MSFT are two of the largest holdings of CSPX 😉 Can watch this video to know more about CSPX yo kzfaq.info/get/bejne/sN2gfayBlseydn0.html

@C0C023a 4 ай бұрын

Hi Ziet! Would you say SCHD or FUSD is a better ETF Dividend? THANKS!

@xuedalong Ай бұрын

Also curious - seems the yield for SCHD will still be higher even after the 30% withholding tax

@cesarroque 6 ай бұрын

Have you reviewed VWRA? what you think about it vs VHYD

@ZietInvests 6 ай бұрын

They have different investment strategies! VWRA is an all-world ETF, you're investing in global stock markets, which don't necessary offer high dividend yields. Meanwhile, VHYD focuses on high dividend yield stocks, so it boils down to what your investment strategies- capital gains or dividends!

@siumingyeoh6583 6 ай бұрын

Hi Ziet. If we buy individual stocks like tesla, apple , these would be subjected to 30% witholding tax too?

@ZietInvests 6 ай бұрын

The dividends that they pay out - yes! Since they are US-domiciled companies

@dylanm2517 6 ай бұрын

May I ask about your opinion on SCHD? Saw that a lot of content creators around the topic of investing, are mostly recommending SCHD as the go-to and best dividend ETF.

@ZietInvests 6 ай бұрын

Hi Dylan, i actually covered SCHD ETF here before: kzfaq.info/get/bejne/bcl5m69qu7fSdH0.htmlsi=tqfyFBPLS-OIo1IW That said, while many content creators might recommend SCHD for its solid performance and reliable dividends, it's always important to consider your own investment goals and risk tolerance coz no single ETF is the "best" for everyone; it really depends on your personal situation! (withholding tax could play a big role to some people with larger capital too!) 😊

@joe818 6 ай бұрын

is there a ireland counter of schd etf ? like the same strategy in picking stocks in etf

@ZietInvests 6 ай бұрын

Yes! Can check out the Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYL). It's not exactly the same, but it has a similar idea, aiming for stocks around the world that give high dividends.

@siumingyeoh6583 6 ай бұрын

Hi Ziet. What is your opinion on MAGS and METV etf? Would it be a good buy?

@ZietInvests 6 ай бұрын

Hello! Not that I've dived deep into them as they are more sector-based (global security/metaverse) - a little bit out of my league to give any substantial opinion :x

@kellysuet 4 ай бұрын

Hi Ziet. Is Ireland's deemed disposal tax applicable to foreign investors not staying there?

@claudiovallone9217 2 ай бұрын

I wanted to ask the same

@gnvsem8640xnq 2 ай бұрын

Schd dividend tax is 30%. But these ireland-domicile etf dividend tax is 0% ? Tjs

@ASITL 6 ай бұрын

can you suggest some low risk and high liquidity investments (in IBKR) to hold cash while waiting for favourable markets for non-us residents?

@ZietInvests 6 ай бұрын

Can check out short-term US treasuries - guide here! kzfaq.info/get/bejne/rpqbqZqVldCcYnU.htmlsi=SZ24y1D7lMNIIXB9

@ASITL 6 ай бұрын

@@ZietInvests i checked out that video but i was looking for something less $1000 to be invested for less than 1 month. can you suggest something else?

@ASITL 6 ай бұрын

can you make a video on how to earn from bond etf, if invested for few days?

@ZietInvests 6 ай бұрын

Oh that could be an interesting one - though most investors would go for bonds for longer-term investments. Will check it out!

@Victor_YNWA 6 ай бұрын

Hi, Ziet. This question may be out of context here. Do u know any Irish counterparts for VTV etf? The closest I've found so far is R1VL in terms of the holding companies

@ZietInvests 6 ай бұрын

Hello! Absolutely, R1VL is a decent Irish counterpart to the U.S.-focused VTV ETF, targeting similar value stocks within the European market. While it doesn't match VTV exactly due to its focus on European instead of U.S. companies, it follows a similar value-oriented approach - essentially it's comparing apple vs orange ya. Do make sure to double check its holdings, fees and historical performance yeah!

@Victor_YNWA 6 ай бұрын

@@ZietInvests hi Ziet, thanks for your reply. I need your opinion on my ETF profile. Currently I'm having VOO, VTV, QQQM, FTEC, MCHI and IUHC. Since IBKR allows me to trade irish domiciled ETF in fractions. Is it wise for me to shift all of my US domiciled to Irish due to withholding tax concern and I prefer acc over dist. Below are my US domiciled, to be shifted to Irish. VOO ~ CSPX VTV ~ R1VL FTEC ~ IUIT MCHI ~ MCHT or ICHN QQQM remains. And possible to add CYBR into my profile Thanks, best regards

@taehayu9577 5 ай бұрын

How to add UK in IBKR - which part of the setting?

@ZietInvests 16 күн бұрын

Its under permission to trade - stocks☺️

@daxcheng 6 ай бұрын

Can compare these with our divided king Maybank?

@ZietInvests 6 ай бұрын

Two different asset type o: maybank is individual stock, MYR exposure, banking industry, tied to malaysia’s economy - hence not really comparable to these ETFs’ exposure/component

@fongweihao5800 6 ай бұрын

What is your opinion on investing in gold physically and not physically.

@ZietInvests 6 ай бұрын

It's just another asset for portfolio diversification/capital preservation purpose! Not a fan of it, at least not at my age where I'm looking for growth instead. Physical vs digital: Physical usually takes up more fee %, digital one cheaper but have to check whether they track the price closely with little error/margin. Hope this helps!

@omarb1912 6 ай бұрын

Does IKBR automatically take out the taxes or do you have to file taxes

@SAKTHITech 6 ай бұрын

Automatically takes out

@ZietInvests 6 ай бұрын

Automatically calculated and cashed into your account cash balance (you no need to do anything)😄

@samuelzev4076 6 ай бұрын

Are all these ETFs mostly US based? If I want to buy the Ireland based it must show the sign LSETF?

@tien8712 6 ай бұрын

he show is Ireland based

@samuelzev4076 6 ай бұрын

⁠@@tien8712 what is the indicator on IBKR that it’s the iris one, does it have the LSETF sign after the ticker symbol or is it just the ticker?

@ZietInvests 6 ай бұрын

Both! Ticker symbol tells you which ETF in specific (tally to their fund factsheet), and also the LSEETF symbol tells you its stock exchange (london stock exchange); no US domiciled ETF will be listed on LSE 😁

@venusv4698 6 ай бұрын

Would you consider isac?

@ZietInvests 6 ай бұрын

Yes! Not as a dividend ETF, but I've covered it under my All World Index ETFs video here: kzfaq.info/get/bejne/erOnp6h23ZypmoU.htmlsi=qIWNAGFAHR2bLu94