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Old 02.10.2018, 18:33
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Any disadvantages to investing in Swiss ETFs/bonds from US broker vs Swiss/EU broker

Hello,


I am currently using a US broker for investing in the US stock exchange, mainly due to the lower fees, as well as having heard it's simpler tax-wise.


However I would also like to invest money in CH stocks/ETFs, and EU stocks/ETFs. Partly because I don't want to just be tied to USD in case of exchange rate fluctuations.


Are there any disadvantages to doing this from a US broker (btw I am resident in Switzerland, not in the US). I found the tax situation a bit confusing at first when deciding whether to use a Swiss, UK or US broker to invest in the US, I'm still new to this. So would this lead to increased withholding taxes or some kind of double taxation? Should I just open a broker account in Switzerland/Europe for this?
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Old 02.10.2018, 18:44
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Re: Any disadvantages to investing in Swiss ETFs/bonds from US broker vs Swiss/EU bro

For example, if I invest in something like

https://www.justetf.com/servlet/down...try=CH&lang=en

which is domiciled in Switzerland.

That would also eliminate any exchange rate risk from CHF-USD right?
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Old 02.10.2018, 20:46
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Re: Any disadvantages to investing in Swiss ETFs/bonds from US broker vs Swiss/EU bro

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Any disadvantages to investing in Swiss ETFs/bonds from US broker vs Swiss/EU broker
Yes, swiss brokers are f'ing ridiculously expensive, avoid if you can.

Quote:
However I would also like to invest money in CH stocks/ETFs, and EU stocks/ETFs. Partly because I don't want to just be tied to USD in case of exchange rate fluctuations.
This risk is in what your ETFs invests your money into, not in the currency in which ETF shares are traded

Unless you buy one of 'em currency hedged etfs and open wide your wallet then - at 3+% cost p.a. this crap is hardcore robbery.
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Old 05.10.2018, 21:34
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Re: Any disadvantages to investing in Swiss ETFs/bonds from US broker vs Swiss/EU bro

It all depends what you want to buy and how much you are willing to pay on fees. If you are interested to buy Swiss domiciled fund (like the example given above from justetf.com) then you would find that some swiss brokers may have some lower fixed trading fees for such ETFs. If you don't "play around" with many ETFs and instead target for a simple 2- or 3-ETFs portfolio that you buy in a couple of times a year, then the paid fees could be acceptable.
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Old 07.10.2018, 13:03
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Re: Any disadvantages to investing in Swiss ETFs/bonds from US broker vs Swiss/EU bro

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It all depends what you want to buy and how much you are willing to pay on fees. If you are interested to buy Swiss domiciled fund (like the example given above from justetf.com) then you would find that some swiss brokers may have some lower fixed trading fees for such ETFs. If you don't "play around" with many ETFs and instead target for a simple 2- or 3-ETFs portfolio that you buy in a couple of times a year, then the paid fees could be acceptable.

I just noticed a problem though. I'm using TD Ameritrade and it turns out they don't seem to offer access to that CHSPI etf. I checked and it's traded on the SIX Swiss Exchange. Do US brokers in general offer access to other exchanges like SIX, or is there another way to buy such ETFs (and would it require extra fees or something?).


I'm having a hard time finding ETFs with specific exposure to EU and other markets on there.
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Old 07.10.2018, 13:39
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Re: Any disadvantages to investing in Swiss ETFs/bonds from US broker vs Swiss/EU bro

But another thing I'm wondering is, are there any taxes that are taken "within" the ETF?

As in since it's EU companies held in the US, could there be european national taxes levied on its capital gains and dividends, paid by the actual fund, and not necessarily seen by a holder of the ETF? Or is that avoided when they are domiciled in Ireland?
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