Hi everyone !
I have a bit of a niche question but thought you’d enjoy the challenge.
So currently I’m exclusively investing in this ETF that tracks the whole developed world, about 60% of it is USA based:
In the last 10 years it has yielded an average of 11.4%, it is accumulating and has an expense ratio of 0.2%
It is 100% stocks.
The capital gains here are taxed at 28%.
I’m thinking of diversifying a bit, maybe 30 or 40% into something else.
A very popular option here is an actively managed fund that has a mix of stocks and bonds (about 50/50) with an expense ratio of 1.7%. In the last 10 years it has yielded 8.3% (this amount is net of the 1.7% expense ratio)
The thing is, here we don’t have 401k’s and IRA’s with tax benefits. The closest thing we have is this category of actively managed funds. If I withdraw the money from it at any time after 8 years the capital gains are only taxed at 8,6% instead of the regular 28%.
What do you guys think ?