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Learning, Sharing, and Teaching => Investor Alley => Topic started by: LyckligaFiskaren on August 06, 2014, 11:01:48 AM

Title: Vanguard ETF's if I live in Sweden, good or bad?
Post by: LyckligaFiskaren on August 06, 2014, 11:01:48 AM
Hi!

To start with, I live in Sweden. Recently got my debts sorted out, and just about to start investing some money (small scale). I think I might be able to invest about $1500 each month (50% savings rate). I'm only interested in broad index funds and I've been reading some books about it, one of the best ones being Ellis/Malkiel "The elements of investing".

I'm hooked on a simple form of savings and I'm thinking about a 80/20 stock/bond allocation. I am thinking about ETF's like VTI and VXUS and some bonds like BND. But I have to ask, before starting investing, would it be stupid of me, living in Sweden, to invest in vanguard ETF's?

Of course I am aware of the fees involved when buying ETF's. But how about the exchange rates? I am a bit too stupid to understand if I would be better of just investing in some Swedish funds. But none of swedish funds can offer fees as low as 0,20% or below. The ones that do aren't broad enough for what I want.

Can someone give me some guidance, as I don't want to start out doing a noobie mistake.

Thanks!

Title: Re: Vanguard ETF's if I live in Sweden, good or bad?
Post by: LSK on August 16, 2014, 04:08:52 AM
I have no knowledge of the rules and regulations regarding investment in Sweden, but I have found out that in Denmark, one cannot simply buy Vanguard ETFs and be safe in the knowledge that it is the best choice. Actually it seems that it is a really bad choice to invest that way, with the current Danish taxes on foreign investments.

So even if I cannot give you any concrete answers, I would advise you to visit these two posts by J. Collins. Be sure to read all the comments, as I have asked similiar questions to yours in them, and there are some pieces of advice amongst the answer:

http://jlcollinsnh.com/2013/05/02/stocks-part-xvii-what-if-you-cant-buy-vtsax-or-even-vanguard/ (http://jlcollinsnh.com/2013/05/02/stocks-part-xvii-what-if-you-cant-buy-vtsax-or-even-vanguard/)

http://jlcollinsnh.com/2014/01/27/stocks-part-xxi-investing-with-vanguard-for-europeans/ (http://jlcollinsnh.com/2014/01/27/stocks-part-xxi-investing-with-vanguard-for-europeans/)

You can also search this forum for help. I know I have posted similiar questions here too, and I am sure others have too. Maybe even some from Sweden, though I am not sure.
Title: Re: Vanguard ETF's if I live in Sweden, good or bad?
Post by: samuck on August 16, 2014, 09:40:18 AM
Hi, Vanguard has a page on Sweden, start there: https://www.vanguardinvestments.se/content/se/en/home.shtml

For your question on currencies, I think it would actually be risky for you to only be invested in Swedish krona. Why don't you go with a mix of more expensive Swedish funds or ETFs and Vanguard ETFs (in $)? That's what I do, CHF because I live in Switzerland and $ for global exposure.
Title: Re: Vanguard ETF's if I live in Sweden, good or bad?
Post by: LyckligaFiskaren on August 23, 2014, 01:23:31 AM
Hi, Vanguard has a page on Sweden, start there: https://www.vanguardinvestments.se/content/se/en/home.shtml

For your question on currencies, I think it would actually be risky for you to only be invested in Swedish krona. Why don't you go with a mix of more expensive Swedish funds or ETFs and Vanguard ETFs (in $)? That's what I do, CHF because I live in Switzerland and $ for global exposure.

You got a point there. Thanks.