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 [DIY] S&P 500 Index w/ 0.07% Annual Fee, Buy the best companies in the world

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dwRK
post Oct 18 2019, 06:09 PM

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QUOTE(roarus @ Oct 18 2019, 05:17 PM)
BigPay got option for USD transfer?

I can only see Philippines (PHP), Indonesia (IDR), Singapore (SGD) and Thailand (THB)
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It's under mastercard...can spend anywhere

But yeah...transfer of funds they list only those

So... myr to bigpay... bigpay to sgd account... sgd account to ibkr... should be doable

Checked for sgd 1000... bigpay still cheaper. Btw need to check for different amounts... some fintech got tiered fees

This post has been edited by dwRK: Oct 18 2019, 06:38 PM
dwRK
post Oct 18 2019, 07:14 PM

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Any etoro ppl here?...

user posted image

Etf 0.09% commission
US stocks 0% commission
Withdrawal fee $25
dwRK
post Oct 19 2019, 09:29 AM

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QUOTE(roarus @ Oct 19 2019, 12:10 AM)
Non UK & Aus residents get an account with eToro's entity domiciled in Cyprus. CySec has very weak regulation, home to many dodgy forex and options brokers. Be warned
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I think It's more legit than many others lah... at least they pass muster UK & Australia... a lot of companies are incorporated in tax free heavens for obvious reasons

Anyways... Tier 1 brokers are obviously 1st choice
dwRK
post Oct 30 2019, 07:18 PM

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QUOTE(moosset @ Oct 30 2019, 06:58 PM)
is etoro better than ibkr?
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Imho no

QUOTE(moosset @ Oct 30 2019, 07:02 PM)
but bond prices can go up in value, ASNB cannot. sad.gif

so the potential upside for bonds is higher, no? during recessions when stocks go down, bond prices go up. But ASNB doesn't, dividend might actually go down.
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In recession...US treasuries bond goes up...most of the chapalang bond funds crash also but not as bad. Bonds are not equal...
dwRK
post Oct 30 2019, 08:30 PM

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QUOTE(alexkos @ Oct 30 2019, 06:59 PM)
Can try ambank bond fund also. Asnb is quite unique for Malaysian. U won't lose principal in Asnb fixed price, that fulfills one major point of bond (security)
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asnb & epf... gov ponzi biggrin.gif
dwRK
post Nov 5 2019, 06:43 PM

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QUOTE(roarus @ Nov 5 2019, 05:50 PM)
Doesn't matter if you have a USD S&P500 fund mixed with EUR S&P500 fund. Once you've paid for units of a fund you're holding the value the underlying companies instead of denomination currency.
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Euronext 100 should be all in EUR... wink.gif

...and If super OCD... then need to consider hedging currency drop also... assuming wanna repat funds lah... biggrin.gif
dwRK
post Nov 5 2019, 08:20 PM

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QUOTE(Ramjade @ Nov 5 2019, 07:20 PM)
Don't need those calculations lah...

15% is better than 30%... biggrin.gif
dwRK
post Nov 5 2019, 08:37 PM

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QUOTE(alexkos @ Nov 5 2019, 08:26 PM)
hehe....good ma.... appreciate his work also..

yes 15% terbest for malaysian. syukurlah donald trump only collect 15% and allow us to hoot intel facebook berkshire apple netflix mcd microsoft all combined in a simple sp500
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Ya...he was very productive that few days... thumbup.gif

But tbh I no clue his results... sweat.gif I only know what he's trying to do... I eventually downloaded all the fx, price and dividend data, and did an NPV assessment on real terms and money of the day... just didn't post it... lol
dwRK
post Nov 5 2019, 09:04 PM

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QUOTE(roarus @ Nov 5 2019, 08:44 PM)
If you're talking about hedged class of a fund, in my opinion is I wouldn't bother - it's still a 50/50 gamble and you might end up hedging for lower returns in the end. Plus the currency forward contracts adds up to the total expense ratio. Unless you know something about that currency pair and really you should be trading currency futures instead of accumulating index funds.
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Ya talking about hedging currency...futures/cfd/options are some methods

It's relevant when you invest substantial sum overseas... say usdmyr 4.2 drop to 3.1... its big % and big $

Should always keep an eye on it

This post has been edited by dwRK: Nov 5 2019, 09:05 PM
dwRK
post Nov 5 2019, 09:28 PM

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QUOTE(Yggdrasil @ Nov 5 2019, 08:39 PM)
Can help me understand this expense/spread thingy...

I know lower expense is good... lower bid/ask spread is good...

For an individual say diy buying one-time market (ask price) and selling market (bid price) 5-10 yrs later... why would spread become so important? Also at peak hours spread should be quite small
dwRK
post Nov 5 2019, 10:02 PM

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for some ppl who also trade in and out of etfs...in addition to "timing" entry/exit based on TA say on sp500 ...they also looked at the premium / discount of the etf prices over the underlying to try get the best value...

Just saying... biggrin.gif
dwRK
post Nov 5 2019, 10:10 PM

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QUOTE(Yggdrasil @ Nov 5 2019, 10:02 PM)
My calculation was based on the closing price everyday. Closing price is the last transaction that took place that day. It can be at the bid or ask price. So it's fair.
I was using all of the samples. Imagine yourself buying the index everyday at the closing price with $10 for 9 years.
Then, what is your average return p.a.? Basically that's what I did for an S&P 500 tracked in US vs the one listed in London.

My findings show that US domiciled S&P 500 wins.

Meaning the benefit of lower expense ratio and lower tracking error exceeds the benefit of lower WHT.

However, I can still try to perform hypothesis testing to see whether the difference is significant or purely by chance.
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Np mate... let me digest your other thread and sleep this over...

Some market / products are less efficient... so there's that...

I think of most interest would be sxr8 vs the best in us

This post has been edited by dwRK: Nov 5 2019, 10:12 PM
dwRK
post Nov 5 2019, 11:01 PM

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QUOTE(moosset @ Nov 5 2019, 10:47 PM)
questions about WHT, I got confused.

A Malaysian citizen buying Irish domiciled ETF, WHT is 15%.

What if,
a US citizen buying Irish domiciled ETF, is the WHT 15% or 30%?
A Japanese citizen buying Irish domiciled ETF, is the WHT 15% or 30%?
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It's not citizenship but tax residency...and tax treaty or not
dwRK
post Nov 5 2019, 11:48 PM

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QUOTE(Yggdrasil @ Nov 5 2019, 11:07 PM)
Withholding Tax (WHT) is only applicable for US non-resident alien.
Withholding tax is cash which the resident company holds to pay to the government on your behalf.
If they fail to keep this cash before distributing profits to you, they will still be liable to pay to the government.

Hence, US citizen do not have to pay WHT but pay according to their usual tax rates. I believe they measure the % based on each person's income.
Just like Malaysia. When you file income tax, there is a section for dividends received. However, we do not pay dividend tax because currently, it's exempt.
In future, we may have to.
WHT 15%. If you look at my thread. The dividends are already 'priced in' into the share price. Hence, the ETF does not pay dividends out but the NAV increases, and thus the price of the ETF itself. But someone point out if I am wrong.
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WHT is charged by the host country to non tax residency ppl... so if you get German shares dividend in Germany you pay Germany's WHT rate... US ppl hold Malaysian shares get dividend in Bursa they pay Malaysia's WHT.
dwRK
post Nov 6 2019, 06:06 AM

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QUOTE(roarus @ Nov 6 2019, 12:02 AM)
Isn't Malaysian securities dividend (other than REITs) taxed at corporate level (single tier dividend) instead?

e.g. Maybank gets taxed 24% by LHDN -> shareholder 0% by LHDN -> whichever tax bracket % you're in by IRS
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I think actually no. Say Mbb dividend tax at 24% but your tax bracket is 10%, you claim back 14% when filling your tax return.

But for foreigners they pay WHT flat rate 27%, so need to pay extra 3%.

For Americans who is taxed worldwide, this mbb divided net of 27% WHT is taxed again as income in USA because no tax treaty with Malaysia.


Edit: it appears I am wrong now with single tier dividend. sweat.gif it's been a while since I paid my last dividend

This post has been edited by dwRK: Nov 6 2019, 08:29 AM
dwRK
post Nov 6 2019, 06:24 AM

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QUOTE(Yggdrasil @ Nov 5 2019, 11:07 PM)
Withholding Tax (WHT) is only applicable for US non-resident alien.
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...maybe I reading this wrong...

QUOTE(Yggdrasil @ Nov 5 2019, 11:55 PM)
Yes. My statement is still correct because Japanese also follow the 15% if they buy the Irish domiciled ETF.

Edit: for clarity. The Irish domiciled ETF already pays the 15% dividend because it is applicable to them. Whether or not your own country has additional taxes is a different story.
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Ireland has a tax treaty with US that's why 15%. Ireland do not tax WHT because the US etf dividend is "generated" in the US not in Ireland. If you buy Irish domiciled Irish etf you get WHT 41% I think... just saying for other ppl biggrin.gif

This post has been edited by dwRK: Nov 6 2019, 06:52 AM
dwRK
post Nov 6 2019, 08:36 AM

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QUOTE(simplesmile @ Nov 6 2019, 08:20 AM)
This why I'd rather invest in Irish domiciled funds, then can sleep peacefully.
I think there's no such thing as estate tax or inheritance tax for non-Irish residents.
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Dunno man... http://www.crowe.ie/inheritance-tax-non-re...-beneficiaries/
dwRK
post Nov 6 2019, 02:11 PM

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QUOTE(Chounz @ Nov 6 2019, 12:16 PM)
i currently looking at this : BNP Paribas Easy S&P 500 UCITS ETF EUR C (ESE.PA), listed in France, dividend will be reinvested into the ETF.
Current price EUR 12-13 per share, quite cheap also.

Should be able to address the WHT issue?
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Dividends paid to non French residents

Dividends paid to individuals who do not reside in France are subject to a withholding tax at the 12.8% upper rate.

However, regardless of the beneficiary's place of residence, a 75% withholding tax is levied if dividends are paid in a non-cooperative state or territory.(2)

(2) 2018 list of NCST: (this list is updated on a yearly basis): Botswana, Brunei, Guatemala, Marshall Islands, Nauru, Niue and Panama.
dwRK
post Nov 6 2019, 04:03 PM

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QUOTE(Chounz @ Nov 6 2019, 02:42 PM)
I think you didn't get my message, the dividend for this ETF will be reinvested in the ETF again.
Meaning, there is no dividend from this ETF, hence, it should not subject to any WHT.

Unless you are saying there is WHT attach to the capital gain subsequently when dispose the ETF.
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You better check how div & wht & reinvestment work again wink.gif

This post has been edited by dwRK: Nov 6 2019, 04:27 PM
dwRK
post Nov 6 2019, 04:30 PM

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QUOTE(moosset @ Nov 6 2019, 04:14 PM)
This is not correct lo .... the SXR8 that we talked about also auto reinvest, still got withholding tax.

If don't want WHT, then don't declare dividend like Warren B. If declare, sure tax, doesn't matter auto re-invest or not.
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Broker auto deduct already... you don't have chance not to declare

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