Are the securities used tax efficient?

When selecting ETFs, we consider not only costs but also liquidity, counterparty risk and tax efficiency. In some cases, we also use ETFs domiciled in the USA, which often have very low costs and high liquidity. In particular, the extremely low bid-ask spreads benefit the client.

From a tax perspective, these ETFs have the advantage that, on the one hand, the ETF itself can reclaim the withholding taxes on the dividends and interest income of the securities it holds. On the other hand, in many cases a part of the US withholding tax on distributions of the ETF can also be reclaimed (see True Wealth tax statement). It should be noted, however, that in certain cases US securities may be subject to US estate tax upon the death of the investor.