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> All about ETFs / Foreign Brokers, Exchange traded funds

rjb123
post Nov 1 2014, 08:49 PM, updated 3d ago

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What are ETFs?


DEFINITION OF 'EXCHANGE-TRADED FUND - ETF' Source
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Benefits of ETFs Source

The Benefits of Trading Like a Stock
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Low Expense Ratios
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Diversification
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How to buy ETFs?

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Taxation
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Funding
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Useful Links
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This post has been edited by rjb123: Jun 28 2016, 06:07 PM
NeN51
post Nov 2 2014, 10:34 AM

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thanks for sharing!
MNet
post Nov 2 2014, 11:46 AM

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60% on healthcare etf now
guy3288
post Nov 2 2014, 11:53 AM

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thanks for sharing, a good summary on ETFs.

I am keen to start investing but had problem opening account.
Anyone in malaysia recently managed to open new account using home email/address?


"First you need a broker, I personally use TD Ameritrade as well as Interactive Brokers. Both allow account openings of non US residents with a Malaysian address . There's others too of course which I won't mention now as I've only used these two."

i received email telling me otherwise.

--------------------------------------------------------------------------
TD Ameritrade Client Services Aug 5 2014
To
me
Mr.

TD Ameritrade is currently unable to open new accounts for clients with mailing and/or physical addresses in Malaysia and Singapore. We appreciate your interest in opening an account and wish you the best in your investment needs.

Sincerely,

Rachael Peacock
Client Services, TD Ameritrade
TD Ameritrade, Inc.

This post has been edited by guy3288: Nov 2 2014, 11:55 AM
ChAOoz
post Nov 2 2014, 12:59 PM

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Im using cimb as they are able to trade on nysearca. The problem is im not sure what to do on the taxation side.

Im assuming that dividend gain is 30% while capital gain is not taxable right ? What pitfall in taxation should i look into ? Is the tax avoidable ?
oneeleven
post Nov 2 2014, 01:54 PM

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Will foreign exchange expenses greatly affect viability?

Are there any Malaysian equivalents?

What about dealing through Vanguard SG?
rjb123
post Nov 2 2014, 05:19 PM

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QUOTE(MNet @ Nov 2 2014, 11:46 AM)
60% on healthcare etf now
*
XLV?

Why so healthy on Healthcare, due to Ebola scare?

QUOTE(guy3288 @ Nov 2 2014, 11:53 AM)
thanks for sharing, a good summary on ETFs.

I am keen to start investing but had problem opening account.
Anyone in malaysia recently managed to open new account using home email/address?
"First you need a broker, I personally use TD Ameritrade as well as Interactive Brokers. Both allow account openings of non US residents with a Malaysian address . There's others too of course which I won't mention now as I've only used these two."

i received email telling me otherwise.

--------------------------------------------------------------------------
TD Ameritrade Client Services  Aug 5 2014
To
me
Mr.

TD Ameritrade is currently unable to open new accounts for clients with mailing and/or physical addresses in Malaysia and Singapore.  We appreciate your interest in opening an account and wish you the best in your investment needs.

Sincerely,

Rachael Peacock
Client Services, TD Ameritrade
TD Ameritrade, Inc.
*
Hmm this must be something fairly recent? When I applied, just proceeded online then sent them the documents - never contacted them beforehand.

QUOTE(ChAOoz @ Nov 2 2014, 12:59 PM)
Im using cimb as they are able to trade on nysearca. The problem is im not sure what to do on the taxation side.

Im assuming that dividend gain is 30% while capital gain is not taxable right ? What pitfall in taxation should i look into ? Is the tax avoidable ?
*
As long as you supplied W8-BEN you won't get taxed on capital gains, but the withholding tax of 30% on dividends will still apply. On ETFs the only way around this is to buy ETFs from other countries (Ie SG, HK, UK (not UK domiciled though - they charge stamp duty!))


QUOTE(oneeleven @ Nov 2 2014, 01:54 PM)
Will foreign exchange expenses greatly affect viability?

Are there any Malaysian equivalents?

What about dealing through Vanguard SG?
*
Well if you're transferring from RM to USD of course you have some cost on exchange rate and transfer costs - this comes down to the amount you're depositing. But in the long run, your savings on sales charges and annual fees should outweigh the initial exchange rate / transfer charge loss.

Vanguard SG doesn't seem to list any SG based ETFs at all? I just only checked their website so I may be wrong, haven't looked into this in the past.
jutamind
post Nov 2 2014, 07:46 PM

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rjb123, thanks for the good work. i suggest you include the topic on how to fund/withdraw from the trading account as i believe most of us are not aware of...
rjb123
post Nov 2 2014, 07:59 PM

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QUOTE(jutamind @ Nov 2 2014, 07:46 PM)
rjb123, thanks for the good work. i suggest you include the topic on how to fund/withdraw from the trading account as i believe most of us are not aware of...
*
Added smile.gif
ChAOoz
post Nov 2 2014, 08:44 PM

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QUOTE(rjb123 @ Nov 2 2014, 05:19 PM)

As long as you supplied W8-BEN you won't get taxed on capital gains, but the withholding tax of 30% on dividends will still apply. On ETFs the only way around this is to buy ETFs from other countries (Ie SG, HK, UK (not UK domiciled though - they charge stamp duty!))

*
If im not wrong, i trade under CIMB they serve as intermediary as well as act as broker for us to trade in US exchange. In this case should i still need the W8-BEN ?

So far my withdrawal of ETF with them, they did not required me to provide any tax filling, however im not sure on the charges incur during the withdrawal process, might need to re-look into that.
MNet
post Nov 2 2014, 10:12 PM

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QUOTE(rjb123 @ Nov 2 2014, 07:59 PM)
Added smile.gif
*
Pls share ur latest etf holding portfolio
MNet
post Nov 2 2014, 10:14 PM

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QUOTE(ChAOoz @ Nov 2 2014, 08:44 PM)
If im not wrong, i trade under CIMB they serve as intermediary as well as act as broker for us to trade in US exchange. In this case should i still need the W8-BEN ?

So far my withdrawal of ETF with them, they did not required me to provide any tax filling, however im not sure on the charges incur during the withdrawal process, might need to re-look into that.
*
How is the trade commission fee trade via CIMB?
rjb123
post Nov 2 2014, 11:25 PM

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QUOTE(ChAOoz @ Nov 2 2014, 08:44 PM)
If im not wrong, i trade under CIMB they serve as intermediary as well as act as broker for us to trade in US exchange. In this case should i still need the W8-BEN ?

So far my withdrawal of ETF with them, they did not required me to provide any tax filling, however im not sure on the charges incur during the withdrawal process, might need to re-look into that.
*
CIMB website mentions having to complete a W8-BEN at sign up, maybe they provided this at the time?

I know when I opened OCBC securities in SG the W8-BEN was part of the application form
rjb123
post Nov 2 2014, 11:36 PM

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QUOTE(MNet @ Nov 2 2014, 10:12 PM)
Pls share ur latest etf holding portfolio
*
My long term portfolio isn't very exciting :

25% Bonds (BND/WIP)
35% US
20% Europe Developed (VGK)
10% Emerging Markets (VWO)
5% each Gold / REITS

Have some other temporary positions outside of that, but not long term or part of above allocation : EWZ, RSX, SPY, VGK, XLV

UK listed : UKDV, IUKD for some dividend income and as I have spare GBP earning 0% interest (no withholding tax smile.gif)
chicargo
post Nov 3 2014, 01:21 AM

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Let's say I put 10k into Vanguard 500 Index Fund and another 10k into SPDR 500 ETF.

Will they both get the same returns minus the different fund admin cost?
ChAOoz
post Nov 3 2014, 09:40 AM

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QUOTE(MNet @ Nov 2 2014, 10:14 PM)
How is the trade commission fee trade via CIMB?
*
Its 0.42% per trade or min of 25usd
MNet
post Nov 3 2014, 08:01 PM

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QUOTE(ChAOoz @ Nov 3 2014, 09:40 AM)
Its 0.42% per trade or min of 25usd
*
wow too expensive.
rjb123
post Nov 3 2014, 08:19 PM

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QUOTE(chicargo @ Nov 3 2014, 01:21 AM)
Let's say I put 10k into Vanguard 500 Index Fund and another 10k into SPDR 500 ETF.

Will they both get the same returns minus the different fund admin cost?
*
Pretty much, yes. Although small differences in the way dividends are handled between them so it won't be 100% the same.

http://financialindependence.org/sp-500-et...-vs-vii-vs-voo/
NeN51
post Nov 3 2014, 08:31 PM

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apart from those companies all sifus mentioned above, are there any other ways we can invest in ETF?
MNet
post Nov 3 2014, 08:41 PM

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Why u all buy SPY, VOO, IVV ?

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