An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments. It is clear that a US domiciled ETF investing in a total world index or a US stock index is preferable over its Ireland domiciled counterpart in terms of withholding tax leakage, but it may be beneficial to hold ex-US stocks in an Ireland domiciled ETF. Things to take into account are fixed, variable and currency transaction costs, custody charges (bewaarloon) and whether the broker can lend out your securities. It concentrates a large share of its assets in the top 10 holdings. The EU investing wiki page mentions useful aspects of funds to consider, such as; whether the fund distributes dividends, if it is synthetically or physically replicating and the distinction between base currency and trading currency. The Sharpe Ratio over 5 years of iShares MSCI Netherlands Index Fund is 0.38, which is lower, thus worse compared to the benchmark SPY (0.57) in the same period. European stocks constitute some of the biggest and best known companies in the world, including Nestlé SA (NESN), Novartis AG (NOVN), and SAP SE (SAP). Real time iShares MSCI Netherlands Index Fund (EWN) stock price quote, stock graph, news & analysis. They are subject to standard Dutch fiscal treatment and may offer advantages over foreign-domiciled funds. Below, you can choose to view MSCI Private Real Assets Indexes by type (derivatives, direct private property, property funds or transaction linked indexes) as well as by region (country and regional). The NRA’s wiki page compares Vanguard’s VT (US domiciled) with VWRL (Ireland domiciled). Netherlands and all other countries and broad geographic locations are … No guarantees are made as to the accuracy of the information on this site or the appropriateness of any advice to your particular situation. "MSCI Sweden Index," Page 1. To put this in perspective, with an investment in either fund held for 25 years with an annual return of six percent, VT has lost 7.3% due to costs, while VWRL has lost about 14.1% due to costs. Bonds are less frequently taxed by governments, which means for instance that an Ireland domiciled ETF investing in US government bonds does not have to suffer from US tax withholding. The MSCI EMU Index is a market capitalization weighted index maintained by Morgan Stanley Capital International. You can then get the 15% in taxes withheld by the US government back by deducting them from the net wealth tax in box 3. Accessed Nov. 17, 2020. In 2013 and 2014 VWO had a withholding tax leakage of about 11%. "YCharts." Credit Suisse Global Investment Returns Yearbook 2015, Actuele samenstelling AEX en weging van de aandelen binnen de beursindex, iShares taxation of Dutch resident investors, Credit Suisse Global Investment Returns Yearbook 2012 pp. ETFdb.com. Accessed Nov. 17, 2020. Find the latest quotes for iShares MSCI Netherlands Index Fund (EWN) as well as ETF details, charts and news at Nasdaq.com. ETFdb.com. With respect to taxation it would make sense to prefer a US domiciled fund for US assets over an Ireland domiciled fund since a Dutch investor can receive 100% of the US dividends for a US domiciled fund, but the Irish fund cannot receive the full 100% of US dividends.[4]. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Investing tax-advantaged is possible too through 'banksparen', but again only for the amount of your pension gap. * Do the forms * Fund the account * Invest A … In past years, a few good options have been developed for index investing from the Netherlands. There is a variety of different compulsory and voluntary pension funds in the Netherlands. You can check if you have a pension gap on the site of the tax authority.[11]. Since this bubble popped in 2000, the value of the AEX 25 … The SPIVA scorecards, comparing active funds to their benchmarks, have come up with as much as 100% of active funds underperforming their benchmarks over the five years up until 2015 and 96.77% over the last ten years up until 2015.[2]. ETFdb.com. Net wealth (assets-liabilities) is taxed at a fixed 1.2% rate, called the ‘vermogensrendementsheffing’. For emerging markets and with this limited data, the Ireland domiciled ETF seems to have an advantage of 1.5% times the dividend yield. It is of course possible as well to buy bond funds or single Dutch government bonds through your broker or bank. Accessed Nov. 18, 2020. Accessed Nov. 17, 2020. A third index, the AScX index (Amsterdam Small Cap Index), created in 2005, consists of 25 Dutch companies (ranked 51 to 75) in market capitalization. Sector pension fund… The iShares MSCI Netherlands ETF seeks to track the investment results of a broad-based index composed of Dutch equities. Accessed Nov. 17, 2020. 17-27, Investing from the Netherlands: An overview, Investing start-up kit for non-US investors, Investment philosophy for non-US investors, Real estate investment trusts for non-US investors, Stock asset allocation for non-US investors, Comparison of accumulating ETFs and distributing ETFs, Non-US investor's guide to navigating US tax traps, Nonresident alien's ETF domicile decision table, Nonresident alien investors and Ireland domiciled ETFs, Non-US domiciles - European Union countries, Non-US domiciles - non-European Union countries, Investing from Japan for US citizens and US permanent residents, Vanguard US domiciled ETFs that are UK HMRC reporting funds, US tax pitfalls for a US person living abroad, US tax pitfalls for a non-US person moving to the US, https://www.bogleheads.org/w/index.php?title=Investing_from_the_Netherlands&oldid=69911. Dutch cash deposits are insured up until €100,000 per accountholder per bank[9]. * Find an online broker that can accept you - there are loads out there. Since the local AEX (Amsterdam Exchange Index)[note 2] consists of just 25 large Dutch companies with Unilever, Shell and ING taking up 42% of market cap,it might be wise for diversification purposes to look across the borders for global diversification. A second Dutch stock index, the AMX (Amsterdam Midkap Index) was created in 1995 and includes 25 Dutch companies (ranked 26 to 50) in market capitalization. MSCI. For a Dutch investor who earns and spends euro's this can be done by buying an eurozone bond fund or by buying a currency hedged fund.[10]. For 2015, the tax-free allowance is set at €21,330 for an individual and €42,660 for a fiscal couple. The Netherlands’ economic freedom score is 77.0, making its economy the 14th freest in the 2020 Index.  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