VT vs. VWRA

S

szanetti

New member
Hi Baptiste, i wanted to get your view on these 2 ETFs. I’ve been investing for many years on VT and I recently ran into VWRA which seems a very good alternative as “VWRA is Accumulating: it reinvests dividends internally, which can be more tax-efficient and simpler to manage for many investors” (courtesy ChatGPT)
Certainly TER is higher (7% vs. 22%) but the Accumulating aspect, if you are not interested in the dividend, is quite appealing and it helps with the compound interest. Also VWRA as Irish domiciled ETF it’s more tax efficient “U.S. ETFs like VT withhold 15% on dividends for Swiss investors - you may not be able to reclaim it fully. UCITS funds domiciled in Ireland may be more tax-efficient.” (Courtesy ChatGPT)

I am seriously considering switching from VT to VWRA. Any thought?

Thanks,

Stefano
 
Hi and welcome

Unfortunately, there are two wrong things in the courtesy of ChatGPT :)
  1. Accumulating ETFs are not more tax tax-efficient the distributing ETFs in Switzerland, it's the same.
  2. US ETFs are more tax-efficient than UCITS ETF in Switzerland. And even for low amount, they have the same efficiency.
So, at best you will increase your TER and at worst you will lose 15% of US dividends

P.S. No need to address me, in this forum, anybody can answer, that's the goal :)
 
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