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Yes, open a US based interactive brokers account and buy VWRD on the london exchange. That's what I've done, and have bought for the last 2 months. I also couldn't find a cheaper international broker than interactive that would accept South Africans.You have a link or is their name literally "interactive"?
Pretty clear indeed. Thanks for that. It changes my allocation, now I will only hold SA ETFs in my TFSA. I already have an interactive brokers account, and will hold VWRD in there instead. The TER is lower at only 0.25% and I'll only be paying +- 11% divvie tax. No point in paying 0.67% TER when there's no tax advantage.QuoteA disadvantage of holding Deutsche Bank MSCI World in a TFSA account is you do not get the full benefit of not having to pay government’s 15% dividend withholding tax.
Deutsche Bank’s response to my question on how dividend withholding tax worked on its range of blue-chip exchange-traded funds (ETFs) was: "Section 64 (n) of the Income Tax Act provides for a rebate to be deducted from the local dividends tax payable in respect of a foreign dividend if that dividend was subject to foreign tax."
As far as I understand that, it means the dividend taxes are already deducted in the US or wherever, so you do not get as much tax savings from holding them in a TFSA as you would by escaping the full 15% tax on dividends from local companies.
Aside from the tax issues, the MSCI World tracker is not particularly attractive from a dividend perspective since its dividend yield is only about 1.7%, placing it fairly low when ranking ETFs by their dividend or interest payouts.
There we go, clear as mud. Might have to get some one to compare the dividends received in and out of the TFSA.
http://www.bdlive.co.za/opinion/columnists/2015/08/27/how-to-find-your-perfect-tax-free-saving-fund
Dividends are still taxed for overseas companies - so your only saving will be capital gains for the DBX funds, unlike SA ETF's where you obviously score on the dividend front. Just keep it in mind when deciding what's in the TFSA and what's out.
Huh, that's an interesting point that I hadn't considered, thanks for the heads up. Over 15 plus years, that's going to have a pretty substantial impact on the returns over the tax-free ideal. I suppose there's a sweet spot between the gains from being exposed to the world economy, and the loss of the dividends from said exposure. Maybe 50/50 is a bit much?
Never knew. But then the dividends from DBXWD is so little they can just as well keep it.
now I've got some risk management in place it's going to get a bit boringAh come on, you've got losses to win back. Double up so you can make it back quickly
