Basic three fund portfolio - Non US

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Topic Author
yuval318
Posts: 4
Joined: Thu Mar 11, 2021 8:29 pm

Basic three fund portfolio - Non US

Post by yuval318 »

Hi,

I am starting to invest, following the three fund portfolio, since I am not a US citizen and not living in the US I don't want to pay extra tax.
I was thinking to create this 60/40 asset allocation:

Vanguard Total Stock ETF (VTI)
Vanguard Total International Stock ETF (VXUS)
Vanguard Total Bond Market ETF (BND)

But in case I am not in the US, I will pay extra tax. Any specific suggestion for Stocks?
I was thinking on IWDA,

also any other alternatives for bonds in AU?

Thanks !
TedSwippet
Posts: 5166
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Basic three fund portfolio - Non US

Post by TedSwippet »

Welcome.
yuval318 wrote: Sat Apr 03, 2021 9:52 am I am starting to invest, following the three fund portfolio, since I am not a US citizen and not living in the US I don't want to pay extra tax.
You can find suggestions for non-US three-fund and other simple portfolios in this wiki article:

Simple non-US portfolios - Bogleheads

Providing more details, for example your country of residence (Australia?), might help attract more targeted suggestions for you. Adding this to the post subject could also be useful.
User avatar
galeno
Posts: 2653
Joined: Fri Dec 21, 2007 11:06 am

Re: Basic three fund portfolio - Non US

Post by galeno »

I like the 2 fund port.

For US investors: X% VTI + Y% BND ( US stocks and bonds)

For non-US investors: X% VWRD + Y% AGGG (world stocks and bonds)

AGGG can be hedged to USD, Euros, etc.
KISS & STC.
Topic Author
yuval318
Posts: 4
Joined: Thu Mar 11, 2021 8:29 pm

Re: Basic three fund portfolio - Non US

Post by yuval318 »

Thanks a lot. Very useful.

All my stocks portfolio is in USD, should I diversify with AGGG in other currency (e.g Euro)
What will be the advantage to accumulate vs. distribute if I live in HK ?

Thanks !

Yuval
User avatar
galeno
Posts: 2653
Joined: Fri Dec 21, 2007 11:06 am

Re: Basic three fund portfolio - Non US

Post by galeno »

If you are accumulating for retirement your best move is to use accumulating UCITS ETFs.

For distributing ETFs it depends on HK's L3 tax treatment of your world dividend and interest income and your capital gains.

You want to hedge to the major currency closest to yours. Hedging removes the currency fluctuation inherent in using world bonds.
KISS & STC.
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