Why US ETFs Or Stocks Are A Bad Idea (European Investor)

Why you should avoid US ETFs and US stocks as a European investor!

Investing in US based ETFs and single stocks could be a major mistake, costing you as much as 40% of your investment due to estate tax! Here's how it works and how to avoid it as an investor based in Europe!

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Video mentions:

00:00 Investing in US ETFs or stocks could be a costly mistake
00:40 Are US ETFs better than European UCITS ETFs?
02:52 1. There are no accumulating ETFs in the US
03:30 2. Higher withholding taxes on US dividends
04:13 3. US Estate Tax: A very costly mistake?
06:02 What if my country has an estate tax treaty with the United States?
07:49 The best solution for European investors

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Disclaimer: I am only sharing my own experience. I'm not a financial advisor and you should always do your own research and due diligence before investing. Investing involves risk of losses.

[hanshartmann]

US ETFs are the best option in Switzerland. 1) No tax-benefits with accumulating ETFs here. 2) You can get back half of the 30% dividend taxes. 3) Estate tax agreement yes 4) If I move somewhere else, easy, I will sell those US-ETFs and buy the Irish ones, no capital gain taxes due here, we just pay for the dividends. So yes, every country different.

[ratracexcape]

This video offers valuable insights for novice investors who might unknowingly encounter issues with withholding and estate taxes. It's worth noting that non-residents have legal options to protect themselves from estate taxes.

As an EU-based investor avoiding US instruments, I've found the main challenge is the limited range of options, particularly for high-yield income stocks and closed-end funds etc.

While a single passive ETF strategy works well (it's my current approach too), those seeking more sophisticated portfolios might want to explore secure methods for purchasing US-domiciled assets.

Appreciate the informative content as always.

[miri]

Not worth trying US based ETFs, distributed dividends are headache for accountants and laws in some countries are very complicated. You end up paying more in withholding tax than you save on TER. Thanks we have you Angelo.

[outrotipo]

Thank you for the information, Angelo! I have just started my investing journey this year --- a bit late, as I'm in my mid-thirties --- but your channel has been invaluable. As an expat living in Spain, who has lived in a few other European countries over the years, I have my work cut out for me (in as far as reading taxes legislation). Hopefully my family and I will manage to stay put for a while now, it will make retirement much easier to plan! Again, thank you for the video, and for the effort you put into keeping honest. Keep up the good work, you are helping many of us!

[kostischris]

Another Great Video Angelo!! Greetings from Greece!

[Onyek_]

Would love to see a video you discussing your thesis for btc and eth. Keep up the good work Angelo!

[photographe]

Very very interesting. So what are some solutions if we have ETF or stocks in the US, that we are currently in a country with favorable US estate laws? Should we start bringing the assets back into Europe before death?

[sarmagal]

This is awesome and priceless information Angelo, thanks once again!

[charandpk]

Thanks Angelo, I am living in Europe and wanted to invest in ETF's for a long time and I was doing a lot of research before I invested and your videos were really helpful

[TonyShalu-hf]

One of the best videos ever on etf's. You are a shining star. Keep it up. You deserve a lot of subscribers, views and likes,

[HypaxBE]

IWDA and chill.
Thanks again for a very informative video!

[gugli_elmo]

Hi Angelo, this topic is super important. Thanks for addressing it. Could you cite the sources you used for your research? I was aware of this law, but for those of us living in Italy, I didn't know how applicable it was. For those who engage in stock picking, it’s easy to exceed the threshold, and the consequences can be disastrous. I know there’s a way to protect oneself through Trusts, but even on this topic, the information is scarce, especially regarding costs and intergenerational transfers. In my opinion, there is very little information about this regulation among investors, and it deserves to be explored further. Thanks.

[carlosalbertogoncalves]

Great video, Angelo. On a subject that few people were aware.

[iManiac]

Angelo, people are confused)) better to sell everything before death, but thats will be hard to predict for sure))

[mic]

Thanks Angelo! Your only channel justify my YouTube subscription 😅 continue the great work

[MATIvmr]

There is an equivalent of SCHD - FUSI, which you’re right is way way more expensive.
About the topic - if I was living back home in Poland, which has flat 19% tax rate, I’d never touch single stocks, would purely go into accumulating FWRG, VUAG & XXTW 🤷‍♂️ although I’m not and UK has a tax wrapper account up to 20k £ a year so I’m not bothered and we only pay 15% tax on US stocks which is fine as US stocks are killing UK deadbeat stock

[tibisoft]

Thanks, I've never heard this potential disadvantage of individual US stocks.... I investing ~80% of equity part to UCITS ETF, but it would worth to reconsider it and go for 100%.

[i.i.]

Hi, i prefer to watch yor portfolio updates. Please make this type of content more recent!
Best wishes from Bulgaria!

[jim_patten]

You always provide such great information. Thanks :)

[Klausi]

If you look at total return europe is With 6% less then US stockmarket everage. Especially in tech sector US 28% return europe around 7% in tech.
Your gains in US tech is 4 times of eu.