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All about ETFs / Foreign Brokers, Exchange traded funds
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ferox
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 Apr 17 2015, 02:57 PM
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Any discount broker recommendation for an occasional (quarterly), buy and hold investor with access to Irish ETFs?
@pisces88 for your calculations, note the following:
IB charges the difference up to $10 for inactivity. So, even if you paid $1 for commissions for that 1 trade, they will still charge you the remaining $9 for that month, unless you have $100,000 account value with them.
Upon further investigation, the 15% saved by going LSE vs NYSE amounts to an ER of about 0.3%, if investing $1250 per quarter, totalling $5000 a year:
IB: $10x12 = $120 (In fact, I believe the 1st 3 months is waived so about RM90)
TD: 0.3 ER on $5000 = $150 (The trade itself is commission free for certain ETFs, i.e. Vanguard)
It get's worse for TD because from the 2nd year onwards as that ER compounds on top of your continued quarterly investment, so it'll be $300 for TD and $120 for IB. Seems like it's still better to start off with IB and build up until you reach $100k (although it will take a long time at this rate)
Have anyone also looked at iShares and similar ETFs (vs. Vanguard)?
This post has been edited by ferox: Apr 17 2015, 04:44 PM
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ferox
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Apr 21 2015, 07:50 AM
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QUOTE(rjb123 @ Apr 20 2015, 02:04 PM) I think $1250 per quarter may be a bit cost prohibitive in both instances considering the roughly $50 transfer fees. I don't follow your logic of additional ER of 0.3% though? I'll do a spreadsheet and report back shortly  Yes, you need to transfer $5000 just to get costs down to 1%. $10000 seems a better minimum to aim for. (Plus IB needs that minimum anyway) 0.3% numbers plugged from here Nonresident alien with no US tax treaty & Irish ETFsFor quick reference: QUOTE Including the funds expense ratios: VOO's total cost is 0.64%, while VUSA's total cost is 0.37% for a no-tax-treaty NRA.
Including the funds expense ratios: VT's total cost is 0.76%, while VWRL's total cost is 0.46% for a no-tax-treaty NRA. This doesn't take into account the slightly higher trading commissions on the LSE. This post has been edited by ferox: Apr 21 2015, 08:01 AM |
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ferox
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Apr 26 2015, 06:19 PM
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QUOTE(rjb123 @ Apr 21 2015, 01:00 AM) Npt yet, busy day. I should have time to do it today  We're still waiting... |
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ferox
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Apr 27 2015, 02:14 PM
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QUOTE(rjb123 @ Apr 27 2015, 11:27 AM) https://docs.google.com/spreadsheets/d/142S...dit?usp=sharingHopefully that's correct, need to double check through the formulas. There seems to be some issues with the GOOGLEFINANCE features, sometimes a few of them don't load up but work after refresh. Formula looks okay except: 1. Withholding tax for VUSD is 15% not 0% I believe. 2. IB's cost for US denominated stocks on LSE is 0.05% trade value / min. order $5 ($10,000 value). So it should be Qty (-5) & Cost (+5) in the formulas. 3. For those who have not build up to $100k, the trading cost on this platform is exactly $10 every month. 4. For DRIPS, can it reinvest less than 1 stock? My take is that if you're consistently adding to the fund, dividends collected will simply be rolled into the next BUY event anyway. I re-did the calculations using criteria (1) & (3) above, my results are: ROI VUSD 9.68% vs VOO 8.83% (0.85% difference) VUSD $342.71 extra This post has been edited by ferox: Apr 27 2015, 02:27 PM |
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ferox
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Apr 27 2015, 02:33 PM
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QUOTE(rjb123 @ Apr 27 2015, 02:20 PM) 1. VUSD Witholding taxes are already settled in the ETF, not deducted after payout. So there's no extra 15% to be deducted A quick recalculation: ROI VUSD 9.74% vs VOO 8.83% (0.91% difference) VUSD $363.64 extra So.. IB buying LSE stocks it is?  |
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