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Diversification: AUS vs USA / Intl Domiciled ETFs
Investing Strategy
When people say to diversify between Australia and the USA / International ETFs does that mean both should be purchased from an Australian domiciled ETF (for franking credit benefits) or to diversify between Australian and USA / Internationally domiciled ETFs? Thanks
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Hey Jacob.
When people say diversify, in every case I’ve heard of, they are referring to owning Aussie shares as well as US or International shares. It is typically better if the global shares are purchased using an ETF which is domiciled in Australia – essentially one that is operated from here.
Just to be clear, there are no franking benefits for international shares, regardless of where the ETF is domiciled. Franking only exists for Australian companies paying tax here.
Hope that helps.
Dave
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