I realised I have started my "investment" journey since 2015 and my portfolio has not changed much. It is still the usual 3 exchange traded funds (ETF). However, recently, due to the rally of the technology sector, I too also have the Fear Of Missing Out (FOMO) symdrone. However, as a Singaporean, we want access to cheaper overseas ETFs, especially those that are taxed less for withholding tax by the US (from 30% to 15%) if we choose funds that are domiciled in Ireland, we will usually have to look at those listed in United Kingdom (UK). For technology ETF, I hope to follow the technology sector that has the most exposure to the world technology ETF. What I found was iShares Global Tech ETF | IXN which has an expense ratio of 0.47% which is pretty high for ETF. In addition, as it is domiciled in US, we aliens will be taxed 30% for the dividends which is substantial and should be avoided.
After looking around, I found the next best one which has low expense ratio and is domciled in Ireland:
iShares S&P 500 Information Technology Sector UCITS ETF | IUIT
It has a an expense ratio of 0.15% and 15% dividend withholding tax. However, it is only US technology stocks and Amazon is not considered a technology stock. If we want exposure to China or the rest of the world, IXN is better but not all technology stocks are held by the ETF also. As an alien, this is the best choice in terms of expense ratio and dividend withholding tax. Furthermore, since majority of the largest technology stocks are still mainly in the US, this ETF will suffice but when a more encompassing one arises, I will look forward to buying it too.
In the future, if there isn't any good world tech etf, the only choice is to buy Amazon, Alibaba, Baidu and Tencent to complement the current IUIT and forgo some of the other smaller technology players world wide.
However, I do not have much money currently and can only purchase a small amount every month and I do hope that more money can flow to me so that I can put more of them into ETFs.
If you will like to know of what I have in my portfolio, you can view my previous post here.
Disclaimer: I not telling you to buy this ETF, please do not treat this as an advise or encouragement to buy. I am not liable for any losses that is incurred. However, I am just sharing what I have found and is buying as I will like to gain more exposure to the technology sector where I feel that it will be growing faster than the other sectos. (I am still invested in the world ETF:
iShares Core MSCI World UCITS ETF | SWDA)
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