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

[@zhanart6563]

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]

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

[@taehayu9577]

Hi Ziet, love your videos. I live in SG and looking for a way to reduce the withholding tax, 30% for devidend ETF. What's the identical Island ETF of SCHD?

[@BrittanieKilchoer]

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)

[@danielsilva7476]

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

[@ZietInvests]

Thank you very much!

[@purpletulip1688]

Thanks for the great research!!!

[@ZietInvests]

Our pleasure!

[@C0C023a]

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

[@xuedalong]

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

[@abinayanagaraju4460]

Hi Ziet, would it make sense if I'm buying 1 share every month on S&P 500? As Malaysian buying one share itself is very expensive already. Or we should always invest the same amount of money every month?

[@rafelgiralt]

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!

[@depashthapa3163]

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?

[@angell863]

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]

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

[@Johann75]

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

[@ZietInvests]

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!

[@veryshuai6095]

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]

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 ;)

[@persieprince9345]

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]

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]

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

[@agoogleuser9025]

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

[@areebachewa8318]

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

[@jackyinhere]

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]

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 kzbin.info/www/bejne/sKjTe3yGZsaBfKs

[@siumingyeoh6583]

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

[@ZietInvests]

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

[@dylanm2517]

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]

Hi Dylan, i actually covered SCHD ETF here before: kzbin.info/www/bejne/bZSsmX9vi7aheqssi=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!) 😊

[@kellysuet]

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

[@claudiovallone9217]

I wanted to ask the same

[@ZietInvests]

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

[@joe818]

schd

[@ZietInvests]

@@joe818 solid pick!

[@seanmumford2358]

Is CSPX good?

[@agoogleuser9025]

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

[@Vozd1990]

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

[@maximus6884]

Does invesco truly have those assets under their belt?

[@sanchotolentino350]

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]

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!

[@iammclovin227]

Hi Zeit, do you have something similar for non dividend paying ETFs,; domicile in Ireland? Also, a comparison on returns of non dividend paying Ireland domiciled ETFs with US domiciled RTF would ge great considering the difference withholding taxes. Thank you

[@ZietInvests]

Hi, yes I do - perhaps you can check out this video: kzbin.info/www/bejne/jHqwYpmZr7aXd6csi=cjk3_MOGVW2hA1q5 The comparison of returns, done in this video: kzbin.info/www/bejne/sKjTe3yGZsaBfKssi=iZhVYBmi8te71aJt Hope this helps!

[@iammclovin227]

@@ZietInvests thanks Zeit, I will watch both videos.

[@fongweihao5800]

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

[@ZietInvests]

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!

[@ASITL]

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]

Can check out short-term US treasuries - guide here! kzbin.info/www/bejne/rmXOp2qaZc9raKMsi=SZ24y1D7lMNIIXB9

[@ASITL]

@@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?

[@Kappacino1010]

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

[@ZietInvests]

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 :)) kzbin.info/www/bejne/iHLUgK2qg86egLc

[@xuedalong]

How about SEDY for emerging market dividend ETF?

[@kenjimiao967]

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

[@nurcahyonugroho1492]

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.

[@siumingyeoh6583]

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

[@ZietInvests]

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

[@samt2869]

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]

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: kzbin.info/www/bejne/Y4m4ZWqBodSIbdUsi=UiLgzqzz17j_LXK5

[@samuelzev4076]

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

[@tien8712]

he show is Ireland based

[@samuelzev4076]

⁠@@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]

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 😁

[@omarb1912]

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

[@SAKTHITech]

Automatically takes out

[@ZietInvests]

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

[@Victor_YNWA]

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]

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]

@@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

[@cesarroque]

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

[@ZietInvests]

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!

[@NowIsee-NowIdont]

Bro, for a non-dividend ETF like QQQ, is it okay to have it directly invested in the US since it doesn't pay much in dividends?

[@ZietInvests]

Hey bro, if you're investing in a non-dividend ETF like QQQ, having it directly invested in the US is generally fine since the focus is on growth, not dividends. Hope this helps!

[@joe818]

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

[@ZietInvests]

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.

[@ASITL]

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

[@ZietInvests]

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

[@gnvsem8640xnq]

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

[@venusv4698]

Would you consider isac?

[@ZietInvests]

Yes! Not as a dividend ETF, but I've covered it under my All World Index ETFs video here: kzbin.info/www/bejne/en7apXh7rZt4oLMsi=qIWNAGFAHR2bLu94

[@dismaria78]

Can we buy ireland domicile etf in momoo?

[@ZietInvests]

not at this moment!

[@taehayu9577]

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

[@ZietInvests]

Its under permission to trade - stocks☺️

[@daxcheng]

Can compare these with our divided king Maybank?

[@ZietInvests]

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

[@U41ha]

choose accumulating ones, so you don't have to worry about dividend tax

[@ZietInvests]

💯

[@mrrscta]

Brazil is 30% and no questions.

[@ZietInvests]

Yup 30% WHT!

[@jinngeechia9715]

Dividends are already priced in which explains their lower capital gains growth.

[@ZietInvests]

Yup! Hence why I looked at their “net yield” instead for the return benchmark 😁