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UK / HK ETF with DBS - Fees on Dividends etc

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  1. #1

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    UK / HK ETF with DBS - Fees on Dividends etc

    I am considering going through my DBS Treasures wealth management account to buy either a Vanguard HK-listed ETF (like 3140.hk) or buy something similar on the LSE (like an Irish-domiciled ETF such as VUSD).

    For 3140, there would be a HKSE related charges, as well as dividend collection fee that DBS charges. Would there be a dividend collection fee for the LSE-listed ETF? For LSE-listed ETFs, are there exchange fees, clearing fees, etc (like the HKSE-related charges applicable for 3140)?

    In the DBS fee schedule, it is not easy to tell whether the dividend collection fees apply to only the HK market, or the overseas markets as well.

    Despite the higher trading commission for buying a foreign-listed ETF, I am leaning towards buying something like VUSD rather than 3140, due to low liquidity and higher expense ratio of 3140, but I want to make sure there's no hidden "gotcha"s somewhere in terms of costs if I use DBS.

    Thanks in advance for any insights on the differences.


  2. #2

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    Interested in this also.

    reditanian on reddit did a very detailed analysis on 3140 vs VUSA, focusing on its 30% vs 15% tax withholding.

    https://www.reddit.com/r/financialin...m_medium=web2x


  3. #3

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    I have formed a different view on the tax situation for us / low dividend etfs.

    The 15% additional or reduced tax is not as important to me compared to liquidity. The Vusd liquidity (in fact most UK / Irish vanguard etfs) is not that great. The spreads are simply too large for it to be an efficient purchase in my opinion.

    Not aware of the DBS charges in UK listed etfs. Ask their backend customer service.


  4. #4

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    Quote Original Post:

    Not aware of the DBS charges in UK listed etfs. Ask their backend customer service.
    haha.. after 3 mths.. still no answe r?

  5. #5

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    Quote Original Post:
    haha.. after 3 mths.. still no answe r?
    Buy/Sell - Yes, received an answer, no stamp duty.
    Dividend related charges - No (Prefer to wait and see what happens as opposed to take someone's word for it).

    Adapting to a bank is a multi month (2 quarters to figure out charges + 12-18 months for tax refunds on US exempt securities) process for some of these things.

    Do you have any overseas securities in the HK acct btw? Any dividend handling charges?

  6. #6

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    Quote Original Post:
    Do you have any overseas securities in the HK acct btw? Any dividend handling charges?

    i am using phillip in singapore.. not sure if they have.. my bet is they do.. since they are so manual..
    but given up on this and used to it... generally they adapt to competitors anyway, so if competitors are offering better they will usually match up the pricings..

    which tax exempt securities you are looking at ? full tax refund or reduced withholding ?

  7. #7

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    Quote Original Post:
    Not aware of the DBS charges in UK listed etfs. Ask their backend customer service.
    Called DBS' hotline this morning and they had to call me back because they also realized that their fee schedule for UK stock trading was vague. Their answer was there was no dividend collection fee for UK ETFs (in fact they said dividend collection fees only applicable for HKSE and China shares).
    I didn't think about asking about stamp duty (since it's been exempt for UK-listed ETFs since 2014)

    This question is so I can advise a friend about how to use his DBS Treasures investment account to buy low-cost ETFs ... I think he will have to try it out and see how it goes - hope any other costs that pop up are either low or just passthroughs from LSE. Although now that I think of it, dividend collection fees I assume would not be an issue (?) if he was able to choose accumulating ETFs to suit his investment criteria (like the iShares IWDA + EIMI + AGGU).
    shri and traineeinvestor like this.

  8. #8

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    Yes, no stamp duty on UK ETFs at DBS HK.

    Adding - no HK stamp duty on local etfs too.

    Last edited by shri; 12-11-2019 at 03:44 PM.

  9. #9

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    Also consider using HSBC for US fixed income etfs. Transactions costs are cheap, spreads are efficient and tax recovery on iShares seems to work (in my case..)

    https://geoexpat.com/forum/newpostinthread354637.html


  10. #10

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    Investing in DBS

    I am keen to invest in the Development Bank of Singapore since my brokerage recently added SG stocks, but have been dithering over how much I'd lose on the currency exchange. I later noticed that they also trade in USD "over the counter" on the OTC market. This sounded promising at first, but they actually trade on the pink sheets, and not the OTCQX which is regulated to a higher standard. After some time on investopedia I see that it could be that they are being traded on the pink sheets without their consent (i.e. another institution buys their shares and sells them on).

    Does anyone have any further info on this? Based on the numbers on Bloomberg the shares appear to be fully fungible. It would be a long term investment, so the lack of liquidity wouldn't be massive problem buying OTC, but I'd rather avoid it if it was "dodgy". They are available as both ARDs and ordinary shares on the pink sheets.


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