No. of Recommendations: 1
> Nope, Ireland.
Thanks for noticing that. I was directed to the Luxembourg site for invesco and somehow picked up the idea it was a Luxembourg fund.
> I don't like the high *tax* on dividends. An accumulating fund does nothing to help that : )
I might be wrong but I believe that depends on where you're tax resident?
If someone lived in say, Belgium, if a payment never reaches *their* personal bank account, only the ETF managers, then it's my understanding they would not pay dividend tax on it, nor would the manager pay something on the investors behalf (how could they? they don't know the tax situation of the holder of every ETF share). The dividend never leaves the accumulator fund bank account until its reinvested. Hence, people prefer Acc ETFs in Belgium. At least they seemed to, the last time I looked at it a few years ago.
I believe Slovenia used to operate the same way; not sure if it still does. There the dividend tax was 25%, capital gains I think were 25% too - but if you held for 15 years it was 0%. So people would buy Acc and hold.
I think there are a few countries like that. Even in places where the tax rate is the same between dividends and capital gain, choosing when it happens (so you can offset it against a capital loss) is still valuable.
>> The most obvious difference is that there are few mega sized IT companies listed in Europe vs many listed in the USA.
> True by comparison, but there are still some very large cap firms in Europe compared to the smaller ones, meaning still some big advantages to avoiding cap weight.
My intention was highlighting the shape of the economy / sector difference rather then valuation or scale differences. i.e. 'a bit of everything' has a slightly different flavour in Europe vs USA. Or Korea, for that matter.
> > 5-6% of the fund is US stocks (liquidity?).
> Ummm...no?
invesco.com - Invesco msci europe equal weight ucits ETF distScroll to 'Fund Country exposure'
United States 5.46%
TRS