No, VXUS is not subject to 41% exit tax - it's a US domiciled ETF. A holding in its mutual fund equivalent (VGTSX) would be subject to the same Irish taxes.LingoPhil VXUS is a Mutual Fund and as such, subject to 41% Exit tax for Irish citizens.
You are ignoring taxes on dividends. Again, it is nowhere near as clear cut as you keep insisting that US funds/ETFs are always more tax efficient for an Irish resident than Irish/EU domiciled funds/ETFs.You should replace it with VEA (or VEU) which are ETFs that do the same thing (except are only subject to 33% CGT).
No, BND is not a US dollar hedged ETF.Be aware that BND is a dollar hedged Bond ETF.
Desired International allocation: 40% of stocks
Country of Residence: Ireland
Age: 24
The Boglehead website recommends a three fund portfolio such as 1-3 below. However, I am not certain if this would be suitable for an Irish investor.
Vanguard Total Stock ETF (VTI)
Vanguard Total International Stock ETF (VXUS)
Vanguard Total Bond Market ETF (BND)
Actually, VXUS tracks the FTSE Global All Cap ex US Index, which includes emerging markets. VEA tracks the FTSE Developed All Cap ex US Index.foreign developed market equities (i.e. Global Stocks ex-US (VXUS) and US total market index (VTI))
VTI tracks the CRSP US Total Market Index - it doesn't have any allocation to non-US securities.VTI does have an allocation to Eurozone equities, but it's mostly to Japan, UK, Canada, etc. (i.e. foreign developed markets).
Ok I stand corrected and I've amended the original post. The point being that the OP has asked for obs on a strategy developed from the perspective of a US investor. The OP is IE based so I would have expected an explicit allocation to domestic, i.e. eurozone stocks as the primary asset class, and then allocate as appropriate to other asset classes. It's preferable that the OP works out an asset allocation strategy based on his age; risk profile, etc. and then looks for appropriate investment vehicles to fulfill this strategy.Actually, VXUS tracks the FTSE Global All Cap ex US Index, which includes emerging markets.
Is this an American strategy ?
What does 40% international allocation mean.
I would suggest that a lot less than 60% of your money should go into Irish stocks.
Well, personally I would just invest at market weights (which could be achieved by holding equal amounts of VTI and VXUS - or just holding VT) but reasonable people can disagree on this point.The OP is IE based so I would have expected an explicit allocation to domestic, i.e. eurozone stocks as the primary asset class, and then allocate as appropriate to other asset classes.
Hi Rekhi,
Irish domiciled UCITS ETF's have an 8 year 'deemed disposal' requirement which also must be considered. If you google 'deemed disposal on ucits etf' you will see the link to the revenue guidance note on etf's. Basically your capital gain will be taxed at 41% every 8 yrs & you get a credit to offset liability when you do eventually sell.
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