Throughout the last year or two I have been trying to get my head around how best to follow the simple investment strategy laid out by MMM and JCollinsNJ, but living in Denmark makes the matter really complicated, and I need help figuring out what to do.
To make a really long story super short, it seems that it might be better for me as a Dane to invest in A rather than B:
Option A:
A
Danish fund following the MSCI Global Minimum Volatility index at 0.6% fee, but no fees for buying, only on selling.
Option B:
Buying ETFs of Vanguards (US) VTI/VT fund at 0,06% fee, but with higher taxes on gains, fees on buying and selling
So before diving deeper into the whole fee and tax debacle of investing in Denmark, I would like to ask whether or not you think that a fund following the MSCI Global Minimum Volatility index can be a good substitute for Vanguards VT?
If I have understood everything correctly, then the taxation issue is a bit complicated, but basically my holdings in a non-Danish fund will be taxed every year, even if I do not sell anything. So in years with growth I am taxed on a growth, that I may never see, as they may have fallen again when I sell the shares.
If I buy into a Danish fund I will only be taxed when I sell. That ensures that I will not be taxed on gains that are never realised.
I also get a tax-deduction on losses, but this is a smaller tax-deduction than the tax that incures when I have gains, plus the deduction can only be used on other stocks/shares gains. So if I have 100% in an Index stock fund that goes down, I have nothing gaining value that I can use the tax-deduction on.
On top of this tax issue there is of course also the issue of currency conversion when I use my Danish kroner to buy Vanguard shares in US dollars.
To make things a little more complicated, I use a Scandinavian broker that allows me to buy into the above-mentioned Danish index fund with no fees omce a month. They take 0,10% fees (min. of about $15) on buying Vanguard shares for instance.
All in all, it's a pretty complicated picture, and I cannot figure out what is the best course of action, so I turn to the collective expertise of the MMM-forums for help. What would you advise me to do?
I should mention that so far I have invested in the Danish fund exclusively, but I am more than willing to change tactics.
Many thanks in advance!