Are the securities used tax efficient?

When selecting ETFs, we consider not only the costs but also the liquidity, the counterparty risk and the tax efficiency resulting from the fund domicile, among other things. Due to the tax advantages, index funds exempt from withholding tax are also used for Pillar 3a.

ETFs domiciled in the USA, which often have very low costs and high liquidity, are also used in some cases. Customers benefit in particular from the very low bid-ask spreads.

From a tax perspective, these ETFs have the advantage that, on the one hand, the ETF itself can reclaim withholding tax on dividends and interest income from the securities it holds. On the other hand, in many cases part of the US withholding tax on distributions from the ETF can also be reclaimed (see True Wealth Tax Statement).

It should be noted, however, that in the event of the investor's death, US securities above a certain value limit may be subject to US estate tax in certain cases.