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Fixed Income / Bond ETFs - How do you select them?

  1. #41

    Join Date
    Aug 2018
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    15
    Quote Originally Posted by john_1122
    Thank you. This looks interesting, but how do I do my own research? STAB and STAC don't seem available at Saxo (though there is a Standard Chartered 7.5% Perpetual Call, yielding 6.57% (maybe callable on 2 April 2022 the earliest). Though I don't know if this is the one you mentioned, and the one that seems safer (according to your explanation). So my question is where I can find the kind of information that you gave us. Thanks!


    https://www.londonstockexchange.com/...3.html?lang=en
    https://www.londonstockexchange.com/...3.html?lang=en

    Original offering circulars:
    https://www.sc.com/en/investors/cred...eferenceshares

    Finding research on these and similar issues is very difficult, there are some discussion boards. It is a small backwater of the markets but one that i think offers great rewards if you understand and are happy with the risks.
    john_1122 likes this.

  2. #42

    Join Date
    Mar 2016
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    160
    Quote Originally Posted by jrkob
    I misphrased that, was a bit late, meant to say that changes in NAV should be post tax and to ask if the cash account was credited of the dividends net or gross of tax.
    In any case it doesn't matter... and as your own and pin's experience have shown in the other thread brokers are not consistent from one security to another and different brokers and their WHT agents seem to treat the same security differently...
    I do not have a separate cash account. I have one account which holds a combination of ETF positions plus remaining cash. Dividends received are added to that cash amount and Tax withheld is subtracted from that cash amount.
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  3. #43

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    Dec 2002
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    Dividends received are added to that cash amount and Tax withheld is subtracted from that cash amount.
    This bit puzzles me and seems to be an IB issue.

    Technically, I feel that if the tax is a WHT, it should NEVER be shown as a credit/debit item in your cash statement. It implies that for even a fraction of a nano-second, you received a dividend without any WHT and then paid taxes from your cash account.

    Puzzling... I am not sure why this would happen at IB. With other banks I see 1 credit entry, and a statement associated with it, which typically says something like "$10 distribution, $3 tax withheld, $7 credited". I think this is more correct, but then I'm not familiar enough with how the taxes work - are you paying the IRS or is IB paying the IRS or is the fund's agent or the fund paying IRS the WHT.
    Have a GeoExpat related problem - please create a support ticket.

  4. #44

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    @shri I'm not a bookkeeper so I don't know what the correct way of handling is. When I receive a monthly statement from IB it has two separate sections: one for Dividends and one for Tax withheld. It could be that they present it this way to make it easier to read for their customers. And that internally the calculation is done first, before crediting a certain amount to the account.


  5. #45

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    @Windmill65 - I suspect I'm overthinking this. Don't worry about it, its my basic distrust with some transparency issues I have over WHT.

    Have a GeoExpat related problem - please create a support ticket.

  6. #46

    Join Date
    May 2009
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    516

    Usually the companies themselves pay the tax and so withhold the tax from the dividend they paying to the fund, as it works the same way for individuals who own individual stocks. The fund is just a stock owner like anyone else.


  7. #47

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    Feb 2015
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    WHT are withheld neither by the brokers (be it IB or HSBC or otherwise) nor by the companies themselves, but by withholding tax agents. Brokers never sees the money and that's why when you approach them with questions about WHT, you can't have a straight answer. It's "consult your tax advisor". They don't know. Because they don't withhold.


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