Author Topic: Vanguard ETF for European  (Read 1995 times)

TurboMustard

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Vanguard ETF for European
« on: June 28, 2018, 03:30:53 AM »
Hello,

I'm a resident of the European Union
I was trying to ideally invest my portfolio with Vanguard 'Admiral Shares', but it is not possible for non-resident of US.
The alternative is to use Vanguard ETF, but in EU, this is not possible without huge tax headaches. However, Vanguard has some registered ETF in Europe on the Euronext with a similar function.
Ideally, I would like to invest in: Total Stock Market (VTI/0.04%ER) and Total Bond Market (BND/0.05%ER). I searched the forum and found:
- IE00B3XXRP09 VANGUARD S&P500 EUR Euronext Amsterdam, which is equivalent to VOO. ER 0.07%
- IE00BZ163M45 VANGUARD USD Treasury Bond UCITS ETF (EUR) | VUTY, which is equivalent to BND. ER 0.12%

Are these two really the equivalent of VOO and BND?
Is there no VTI equivalent?
Are there better ETF than Vanguard in EU that invest on the US market?
Did I miss anything?

Nomadic Becca

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Re: Vanguard ETF for European
« Reply #1 on: June 30, 2018, 07:07:56 AM »
Hi, I have shares in this: https://www.fidelity.co.uk/factsheets/JPM-Global-High-Yield-Bond-Fund-C-Income/GB00B235R159-GBP/?id=GB00B235R159GBP&idType=isin&marketCode=&idCurrencyId=

it's all bonds and based in the Americas. I couldn't find a better Vanguard one, I have one Vanguard ETF - the FTSE 100 one which is good but UK based so I'm not sure you'd be interested.

Where are you based? Me in the UK and Germany and sometimes spain.

Sherman

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Re: Vanguard ETF for European
« Reply #2 on: June 30, 2018, 10:29:58 AM »
Why Vanguard ETFs in particular? I ask because all Vanguard European ETFs distribute their income, which is highly tax-inefficient if you are resident in most European countries due to our extremely high personal income tax rates and the fact that in most EU countries, dividend income is taxed at income tax rates.

iShares Europe offers a huge selection of ETFs, including ones focussed on the US, and offers 'accumulating' ETFs e.g. where the income is reinvested and not distributed, and is therefore not (in my country anyway) subject to income tax. The TERs on iShares Core ETFs are competitive with Vanguard. Do your own research, but I'd suggest looking more broadly than one provider.