How does Brexit affect Dbx

[Spreadsheet Ranger]

Sooo

How does Brexit affect DbxWD and DBxEU ?

[Spreadsheet Ranger]

I see ETFSA.co.za has a seminar about this, but it's in Sandon and I am here in the WC. I am really interested to know how the Dbx will be affected by #Brexit

[Spreadsheet Ranger]

Still trying to figure this one out. I deposited R6k into my TFSA I'm planning to have it maxed by December, but with all these woes going on now I'm not so sure of DBx is a good buy and if I should rather just stick with MAPPSG for year one of my TFSA

[DieWerner]

Now is a good time to buy anything in the TFSA, I put in R30k only two weeks ago. 2 days before Brexit I was in the green with 3.4% growth, mainly from divtrx and stxind. right now I'm in the red with 4.51%

[Sebulba]

I know there was some talk a while ago on shareforum.com whether it is wise to put money into DBX's due to the fact that you still get taxed on the other side (not sure which portion, either growth or dividends, since its deducted by DBX themselves) vs investing locally and not being taxed on the growth including the dividends.

[Spreadsheet Ranger]

@Werner true, post brexit is a good time I suppose.

 

@Sebulba you know what thats a very good point I recall something similar, but I know at the time someone made a compelling enough argument for me to buy it anyway, dammit let me go to twitter and ask a pro quickly I will brb

[Spreadsheet Ranger]

Capco on the rise! God dammit must I dump money in now or not...

[Spreadsheet Ranger]

I know there was some talk a while ago on shareforum.com whether it is wise to put money into DBX's due to the fact that you still get taxed on the other side (not sure which portion, either growth or dividends, since its deducted by DBX themselves) vs investing locally and not being taxed on the growth including the dividends.

 

I read here: https://justonelap.com/etf-dbxwd/

It is listed as an “inward investment” on the JSE. This means that it’s classified as a rand denominated investment, even though it offers a portfolio of only international equity assets. The inward investment categorisation ensures that there are no foreign exchange control restrictions or allowances required, nor any tax clearances for individuals, trusts or corporate investors to invest as much as they wish

 

 

Also tweeted Nerina Visser https://twitter.com/Nerina_Visser/status/747789262544838657

[Sebulba]

A disadvantage of holding Deutsche Bank MSCI World in a TFSA account is you do not get the full benefit of not having to pay government’s 15% dividend withholding tax.

 

Deutsche Bank’s response to my question on how dividend withholding tax worked on its range of blue-chip exchange-traded funds (ETFs) was: "Section 64 (n) of the Income Tax Act provides for a rebate to be deducted from the local dividends tax payable in respect of a foreign dividend if that dividend was subject to foreign tax."

 

As far as I understand that, it means the dividend taxes are already deducted in the US or wherever, so you do not get as much tax savings from holding them in a TFSA as you would by escaping the full 15% tax on dividends from local companies.

 

Aside from the tax issues, the MSCI World tracker is not particularly attractive from a dividend perspective since its dividend yield is only about 1.7%, placing it fairly low when ranking ETFs by their dividend or interest payouts.

 

I got the above from the Shareforum.com forum. It also refers to the below link

 

http://www.bdlive.co.za/opinion/columnists/2015/08/27/how-to-find-your-perfect-tax-free-saving-fund

[Spreadsheet Ranger]

I am going to tweet this link quickly. Maybe they respond since this uncertainty is why I did not add Dbx to my TFSA today and instead went CTOP50 and PTXTEN for the time being.