Non-US Investing • seeking advice - Portfolio

There's nothing wrong with that (without checking the expense ratios) however:
- what does "Core" mean in this context?
- Emerging Markets is arguably a little high in this context, relative to its actual weighting in the world? (That partly depends on which index you use). But anywhere between 10%-20% is likely to have similar results in the long run
I would say the main questions are around tax. I think Irish taxation (at least outside of pensions) tends to discriminate against equity investing in favour of, say, real estate. Policy on taxing unrealised capital gains? And at quite a high marginal rate?
However I am not Irish-resident & I certainly don't know the Irish tax system, so I can't say anything definitive.

Thank you for your insights.

Your point about human loss aversion affecting DCA strategy is well taken. I agree it should not go for too long

Regarding the EM allocation: Yes, the 80/20 split deliberately overweights emerging markets compared to their market cap (~10-12%). This is a conscious decision to help balance the current high US market valuations, but it might be overthinking.

On "Core" ETFs: These are part of iShares' Core series, which "theoretically" offers lower costs (TERs of 0.20% for IWDA and 0.18% for IEMA) and broader market coverage, designed for long-term investors.

Regarding Irish taxation: You've hit on a key issue. The current exit tax regime is indeed punitive:
- 41% tax on gains (versus 33% CGT for stocks)
- Deemed disposal every 8 years on unrealised gains
- No loss offsetting against other investments

However, there's ongoing discussion about reforming ETF taxation, particularly around deemed disposal and loss offsetting. I'm optimistic about seeing changes within the next 8 years, though the 41% rate will likely remain. As a contingency, tax residency planning could be an option for eventual liquidation once I retire

I am maximising pension contributions, as this remains one of the few tax-efficient investment vehicles available to Irish residents.

Thanks again

Statistics: Posted by ETFeats — Sun Jan 05, 2025 3:31 pm — Replies 2 — Views 177

---