The tax impact of a fund's domicile is an important consideration for investors, especially when dealing with US stocks. With synthetic replication, there are certain withholding tax advantages compared to physical replication.
According to US legislation, the fund's domicile (such as Ireland or Luxembourg) does not affect these advantages when synthetic replication is employed. This means that the withholding tax advantage remains consistent for all fund domiciles in relation to the MSCI ACWI Index, amounting to 30%.
According to US legislation, the fund's domicile (such as Ireland or Luxembourg) does not affect these advantages when synthetic replication is employed. This means that the withholding tax advantage remains consistent for all fund domiciles in relation to the MSCI ACWI Index, amounting to 30%.