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Where to buy Vanguard ETFs through monthly saving plan?

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  1. #1

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    Where to buy Vanguard ETFs through monthly saving plan?

    I am interested in buying Vanguard ETFs through monthly saving plans, but my bank doesn't give me the option. Does anybody know which bank does?

    https://www.vanguard.com.hk/document...rochure-en.pdf


  2. #2

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    I can trade HK stocks through Interactive Brokers.

    As it happens, I was just talking to a friend on Saturday about local based Vanguard ETF, I've already bought into US Vanguard through IB and was looking into possibility of investing in a local ETF as I'm not American and I think there's a tax on all dividends that I'm earning, so a local ETF I think will allow me to side step the tax issue.

    However it seems like Vanguard HK has an issue with low volume trading : only about 30,000 trade on a daily basis based on the S&P500 fund.


  3. #3

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    I have an account with Saxo, but I would like to buy this through a bank, as it would be much safer (in my opinion).


  4. #4

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    Do a search on this forum. Loads of information about this subject.


  5. #5

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    Quote Originally Posted by sinespe:
    so a local ETF I think will allow me to side step the tax issue.
    It wont, the tax will just be withheld at source in the US before the Hong Kong ETF even receives it.
    sinespe likes this.

  6. #6

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    Original Post Deleted
    Taking calendar year 2016 we have the following:

    SP500TR Dec 30 2016 4278.66
    SP500TR Dec 31 2015 3821.60

    Gain 11.96%

    They list their benchmark as 11.27%. Why?

    I've noticed that many ETFs use a 'net' benchmark that assumes dividends are withheld at the treaty rate between the US and the country where the ETF is domiciled. That 0.69% is about what you'd expect to be withheld for dividend taxes (~0.6% for a 2% dividend yield and 30% withholding tax).

    EDIT: Ah crap, I see the benchmark is in SPXHKDN. Can you look this up for the relevant dates? Otherwise I'll just lookup exchange rates and adjust.
    Last edited by cendrillon; 11-12-2017 at 05:45 PM.

  7. #7

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    Original Post Deleted
    You guys obviously know more about this than I do, but wouldn't it better to compare returns of Vanguard's US listed S&P500 ETF [V00] and Vanguard's UK listed (but Irish domiciled) S&P500 ETF [VUSA, but in GBP] for comparisons to 3140.hk?

  8. #8

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    Some interesting stuff from their prospectus:

    In seeking to track the Underlying Index, the Sub-Fund may invest in financial derivative instruments (“FDI”), such as listed options, exchange traded options contracts, currency forwards, futures, index futures, options on index futures and warrants for investment purposes to gain exposure to the constituents of the Underlying Index or to the performance of the Underlying Index itself, to reduce
    transaction costs or taxes or allow exposure in the case of illiquid stocks or stocks which are unavailable for market or regulatory reasons or to minimise tracking error.
    Under the terms of a Model 2 inter-governmental agreement (“IGA”) between the United States and Hong Kong with respect to FATCA, an FFI domiciled in Hong Kong is generally considered to be FATCA compliant and thus not subject to FATCA withholding if it registers with the IRS on the IRS FATCA registration website and complies with the terms of an FFI agreement with the IRS.
    In the event that a Sub-Fund holds US securities and is not FATCA compliant, the relevant Sub-Fund may become subject to a 30% FATCA withholding as a result of the FATCA regime, and the value of the Units held by Unitholders in the relevant Sub-Fund may suffer material losses.
    Last edited by cendrillon; 11-12-2017 at 05:57 PM.

  9. #9

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    Original Post Deleted
    So here's the exchange rates for the relevant days

    Dec 31 2015 7.75057
    Dec 30 2016 7.75499

    So the USD appreciated by 0.057% over the 2016 calendar year. This doesn't seem like enough to account for the difference.

    Also how do they define a calendar year, as the last trading day in 2015 to the last trading day in 2016, or the first trading day in 2016 to the last trading day in 2016?

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