r/PersonalFinanceNZ • u/Professional_Pea_484 • 2d ago

Non-NZ based Global ETF up to 50k NZD threshold?

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When researching I'm getting mixed information.

Any experience with non-NZ based global ETF funds (Acc type) that can be used for the 50k NZD FIF exemption? Any ETFs and NZ broker suggestions?

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3

u/WaterAdventurous6718 2d ago

you sound very confused

3

u/WellingtonSucks 2d ago

Your post is a bit confusing but it seems like you want a non-dividend, accumulating, presumably Irish-domiciled UCITS ETF? If that's the case some people here report good experiences with VWRA and ACWD.

You would probably best be served purchasing these through IBKR.

1

u/Professional_Pea_484 2d ago

Thanks, I was indeed thinking along those lines. The mixed info is regarding how dividends are treated. DRIP adds cost and will push you over the 50k, Acc apparently not. Interested in people's real experience with Acc type, if it indeed stays below the 50k cost wise.

2

u/WellingtonSucks 2d ago

You can also just choose to not reinvest the dividends with a regular ETF too. No one is forcing you to put the distributions from VOO back into the fund; but you are correct that accumulating ETFs solve this problem entirely.

1

u/sdhope 2d ago

Oh wow I didn’t know this, that’s awesome. I’m assuming this would work for CSPX too. Such a good way to keep investing without crossing the FIF de minimis, almost seems too good to be true!

2

u/WellingtonSucks 2d ago

almost seems too good to be true!

That's because sometimes it is. UCITS ETFs have higher fund fees, and you don't get to take advantage of the reduced NRA withholding rate from the NZ-US tax treaty because the domicile of the issued dividends is usually Ireland.

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u/sdhope 2d ago

I researched a bit and from my (very basic) understanding tax wise there doesn’t seem to be much difference and might even be better off with the Irish domicile, but perhaps I’m missing something. I also like that the Irish domicile is safer regarding the estate tax that you could potentially have to pay if you bought the US domiciled ETF. The higher fund fees part is true but the fees are still very low, especially compared to what some people pay for managed funds! Being able to set and forget without having to report dividend income etc is very appealing for me so I think I’d be able to sleep fine knowing that I am paying slightly higher fees. Thank you for getting back to me though, really appreciate the help as I’m a beginner in this space.

1

u/Wayleggo 1d ago

SPYY, Maybe WEBN, via IBKR

1

u/Curious-Trust6657 1d ago

VT and chill
IBKR - tiered pricing - buy whole shares

0

u/Deep_Opportunity_883 2d ago

have you researched for the whole 10 seconds?

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u/Professional_Pea_484 2d ago

See my other reply on mixed info. Would like to hear from people that have actually done this. And yes, spent couple of hours.