Investment Advice for EFTs on De Giro

pmullan1

Hi All,

I been researching EFT's and summarised below a plan of action. If anyone would like to point out any flaws please be my guest!! Thanks in advance.

Background: I am an Irish based investor, 25 y/o, can invest circa. 500 p/m. I am from Northern Ireland but work and in the south of Ireland. No previous investments.

Platform: De Giro (cheapest fees)

Tax: US domiciled EFT and will get taxed at 33% on capital gains and rate of income tax + USC + PRSI on dividends. Losses can offset taxable gains on different EFTs.

So, invest in a US domiciled EFT, with focus on growth rather than dividends (automatic reinvestment of dividends on US domiciled EFTs is not allowed). Invest in 2/3 different EFTs, possibly one focused on emerging markets and others tracking a low risk stock market index. Any losses on emerging profits can offset taxable profit on s & p 500 (assuming there is some!!).

Currency risk: Avoid if possible. Invest in US domiciled EFTs which are focused on Euro investment.

Diversification between asset classes: Possibly have one EFT focused on bonds and one on equities.

Any suggestions on EFTs which meet the above criteria?

Frogdog

I think these might suit your criteria. They're from the list of free fee ETFs from DeGiro:

Vanguard S&P 500 ETF - US9229083632
iShares Europe ETF - US4642878619
Schwab Emerging Markets Equity ETF - US8085247067

kokiyou

>Losses can offset taxable gains on different EFTs.

From what I read on askaboutmoney losses can only be offset on the same EFT in the same year. But not 100% on this.
I wouldn't bother with bonds til you are 50+.
I think you might want to look into whether there are any fees for buys under 1000 euro in currency or commission, but might be fine with DeGiro.