Author Topic: US based MSCI world recommendation needed  (Read 828 times)

Anette

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US based MSCI world recommendation needed
« on: April 23, 2021, 06:19:10 AM »
Hello,

We have run into a problem trying to invest funds in an MSCI world etf.
My DH is an American citizen resident in Germany and we keep running into difficulties investing all the time. He opened an account with Interactive Brokers and we have really sound advice from a German consumer platform on how to invest in the best, low cost Etfs. Problem is,  as an American Citizen he is not able to invest in these European based Etfs.
Now I am struggling to find US based MSCI World and Emerging markets Etfs and to be able to see their expenses.
Could someone please help?
Etf names, symbols, a website which shows ratings & costs ( not necessarily from a bank)

maizefolk

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Re: US based MSCI world recommendation needed
« Reply #1 on: April 23, 2021, 07:37:23 AM »
Looks like your primary option for an MSCI world index is URTH (https://www.morningstar.com/etfs/arcx/urth/quote). If you want a world index fund but it doesn't specifically have to track that particular index, your partner could buy VT instead an pay only 1/3 as much in expense ratio (https://www.morningstar.com/etfs/arcx/vt/quote).

MustacheAndaHalf

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Re: US based MSCI world recommendation needed
« Reply #2 on: April 23, 2021, 09:28:02 AM »
You might also consider a split between U.S. and international, to save on expense ratios (and allow some added flexibility in rebalancing).

ITOT (U.S.) and IXUS (int'l) are from iShares
VTI (U.S.) and VXUS (int'l) are from Vanguard

Note that VT (Vanguard Total World) and VXUS (int'l) have the same 0.08% expense ratio.  So if you split U.S. and international, that allows half your portfolio to pay just 0.03% in expense ratios.

PDXTabs

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Re: US based MSCI world recommendation needed
« Reply #3 on: April 23, 2021, 09:35:52 AM »
I like VT, and I own some, but it isn't the most tax efficient choice in a taxable brokerage account. There is a really good thread on Bogleheads as to why. Basically, once VT held more US than non-US you could no longer use IRS Form 1666 to get a credit for foreign taxes paid. The way around this is to take MustacheAndaHalf's advice and use two funds.

EDITed to add - I guess for your husband this may or may not help because he may or may not have earned enough to pay US taxes.
« Last Edit: April 23, 2021, 02:15:37 PM by PDXTabs »

Anette

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Re: US based MSCI world recommendation needed
« Reply #4 on: April 27, 2021, 12:49:12 AM »
Thanks  for the speedy responses! We had such a busy weekend that I didn't spend any internet time but thanks to your advice we will try out tonight whether we can invest in these ETF's now. I will report later.

ChpBstrd

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Re: US based MSCI world recommendation needed
« Reply #5 on: April 27, 2021, 09:22:34 AM »
Did the DH open the Interactive Brokers account as an American or as a German? This could be the root cause of the troubles. I would think he should open the account according to his place of citizenship, not residency.

 

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