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FIRST TIME INVESTOR

AU vs US shares

Hi, I’m fairly new to investing and this is a dumb question but what is the difference when investing in the AU shares vs US shares tab? Is it that the AU shares are funds held by brokers in Aus and the US one is US brokers? Is there a better option for an Aus investor? What are the tax implications of investing in US EFTs over Aus ones? Thanks, Molly

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Molly Pearse

29 January 2023

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Dave Gow - Strong Money Australia

INVESTOR

almost 2 years ago

Hey Molly.

Great question!

As I understand it, yes. The AU shares are funds and shares which are purchased on the Aussie stock exchange (including funds which invest in US shares. The US side is for funds and shares which will be purchased through US exchanges and are all managed from over there.

There are some US tax implications for Aussie investors who invest into US listed funds + shares, which you can find more about here: https://passiveinvestingaustralia.com/fund-do...

It’s a bit complicated to be fair, but most Aussies simply invest in funds and shares which are listed on the Aussie exchanges because it’s a bit simpler given the above. Luckily we can still get access to US shares by investing in funds in Australia which invest in US companies.

Hope that helps.

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Cathy Sun

PEARLER

almost 2 years ago

Hi Molly,

Not a dumb question at all.

AU and US shares on pearler is designed to sit alongside one another. Although pearler investors tend to put most of their portfolio into ASX ETFs (some of which also include US holdings), there are some companies (see here) you can only own directly through our US account.

AU shares on pearler is CHESS-sponsored, whereas US investing works upon a custodial system. A benefit of that system is that certain tax-related tasks such as filling out and submitting a W-8BEN form is automatically done for you when you activate your US account.

For some further details on US investing, please check out this FAQs article.

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