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I'm not sure myself yet about how much to go for international, especially at the current rand rate. To me, more importance is that you find a way to reach that R30k before 28 Feb. You can't catch this up.

On the DBXDW vs DBXUS, I'm going DBXWD as this has the maximum diversification. It does allocate about 50% or so to the US, so you might decide that is enough invested in the USA.

Sitting in the same boat. At the moment my TFSA is 33% DBXWD and 66% STXIND. Not sure if I should keep it weighted like that or push the next R30k all into STXIND. Problem I have with STXIND is that there is that the top three holdings make up more than 50% of it.

That said, the top 3 holdings are Naspers, SAB and Richemont all with offshore exposure.

Another option is to play it safer and go with a Top40 like MAPPSG (I'm still looking for a reason not drop my RMBT40 in favour of it).

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.

Quote from: Strive on February 08, 2016, 03:04:36 pm

Quote from: Mr_Dividend on February 08, 2016, 02:51:56 pm

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.

Quote from: Mr_Dividend on February 08, 2016, 04:32:58 pm

Quote

A 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

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.

Hi guys - about to begin riding the TFSA train, and I'm wondering how best to go about splitting the various ETF's.

My thinking is this - the only real question for a TFSA is how big you're going on the international allocation. For the SA equities, you'd put the bulk in DIVTRX/STXINDI/perhaps a REIT. For the international, a good option is DBXWD (TER of 0.68%). Not sure if it's necessary to include DBXUS, but perhaps it's a good idea to have a bigger proportion of the world's biggest economy.

So, with these conditions, how much of your portfolio would you put in the international players? I was thinking of a straight 50/50, but I'm wondering if that could be favorably tweaked. As this will only be accessed in 16 odd years, I'm ultimately far more interested in the long term performance, and so want to optimize for that. Any thoughts/criticisms?