CHOOSING INVESTMENTS
Aus domisciled alternative to VEU?
Hi all, I'm currently invested in VAS and IVV and am looking for something to give me non Aus and non US coverage. VEU looks good but I want to avoid anything domiciled outside Australia, and as I understand it VEU is domiciled in the US. Does anyone have a suggestion for an ETF that can round out my portfolio with some world exposure? I know I could have done VGS instead of IVV but I was hoping to keep the US and non US separate. Thank you!
2 Comments
8 months ago
Hi Charlotte.
Far as I know, the most common alternative to VEU is IVE. But it is higher fee and while I believe it avoids US estate tax complications, it also suffers from some tax drag, so isn’t a perfect alternative.
As you likely know, the other option is going VAS combined with VGS (for global developed) and VGE (for emerging). Or of course a whole portfolio fund like VDHG or DHHF. So I guess you’ll have to weigh up the pros and cons of which particular features are most important to you – low cost, simplicity, most diversification, etc.
None of this is a recommendation obviously and just for further research purposes :)
Cheers, Dave
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ReplyCharlotte M
INVESTOR
8 months ago
Thanks Dave, I really appreciate all that. Can I ask what you mean by tax drag with IVE? Thanks.
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