Investing in the S&P 500? Why CSPX is the Preferred Choice for Singaporean Investors
As a Singaporean investor looking to invest in the US stock market, choosing the right S&P 500 ETF can be a challenging decision given the large array of choices. Among the many S&P 500 ETFs available, I find the iShares Core S&P 500 UCITS ETF (CSPX) stands out as an excellent option for Singaporean investors. No Estate Duty Tax One of the most significant advantages of investing in CSPX is that it is not subject to estate duty tax. This is because it is domiciled in Ireland, which does not have an estate duty tax. In contrast, US-domiciled ETFs like the SPDR S&P 500 ETF (SPY) are subject to estate duty tax, which can be as high as 40%, for holdings in excess of US$60,000. Lower Dividend Withholding Tax (DWT) Another advantage of CSPX for Singaporean investors is the lower dividend withholding tax (DWT) rate compared to other S&P 500 ETFs . Dividend withholding tax is a tax levied on dividends paid by US companies to non-US investors. CSPX has lower DWT because...