Arigato, {{ first name | dear investor }},
If you've been investing in US stocks and ETFs like SPY, VOO or QQQ, I have some exciting news to share with you!
But first, let me ask you something.
Did you know that your US investments could potentially be subject to estate tax of up to 40% when you pass away? 😱
Imagine spending decades building your million-dollar investment portfolio, only to have a significant portion potentially go towards taxes instead of your loved ones!
This is something I believe every Singapore investor should understand, especially if you're planning to build a substantial long-term portfolio.
Let me explain!
When investing in US-domiciled ETFs like SPY or VOO, there are two important tax considerations.
1. US Estate Tax — Up to 40%
If you're a non-US citizen who isn't domiciled in the US, and your US-situated assets exceed US$60,000 when you pass away, your estate generally becomes subject to US estate tax filing requirements. The actual tax is calculated progressively and can reach a maximum rate of 40%.
2. US Dividend Withholding Tax — 30%
When you receive dividends from US-domiciled ETFs like SPY and VOO, 30% is generally withheld before the money reaches your account.
For example, if your ETF distributes US$1,000 in dividends, you would typically receive only US$700 after withholding tax. Over a long investing horizon, these tax considerations can make a meaningful difference to your wealth.
But here's the good news!
🚀 4 New Ireland-Domiciled ETFs Are Coming to SGX!
Singapore investors will soon have another convenient way to access US and global stock markets while potentially reducing these tax exposures!
Four Xtrackers UCITS ETFs are scheduled to begin trading on SGX on 13 October 2026.
And the best part?
You can invest in SGD, during Singapore market hours, without needing to access the London Stock Exchange!
Here's a quick breakdown:
ETF | Ticker | What You're Investing In |
|---|---|---|
Xtrackers S&P 500 | XUS | 500 leading US companies |
Xtrackers S&P 500 Equal Weight | EUS | S&P 500 companies with approximately equal weightings |
Xtrackers Nasdaq 100 | XND | 100 major non-financial companies listed on Nasdaq |
Xtrackers MSCI World | XWR | Large and mid-cap companies across developed markets |
These four ETFs are domiciled in Ireland, which offers two important tax advantages for Singapore investors.
✅ Reduced US dividend withholding tax: Generally 15% at the fund level on qualifying US dividends, instead of the usual 30% withholding on dividends paid to Singapore investors by US-domiciled ETFs.
✅ Reduced US estate tax exposure: The Irish ETF shares themselves are generally outside the scope of US estate tax for non-US investors. So you don’t have to pay estate tax to the US government.
Pretty exciting, right?
But here's something that might surprise you...
💡 Despite These Tax Benefits, I Personally STILL Prefer US ETFs!
You might be wondering:
"Chloe, if these Ireland-domiciled ETFs are more tax-efficient, why don't you just switch your entire portfolio over?"
Great question!
And here's my personal answer.
Because I don't just want my ETFs to grow in value. I also want to use them to generate additional cash flow!
Over the last 10+ years, I've developed an investing approach that combines long-term ETF investing with options strategies.
Instead of simply buying ETFs and waiting for their prices to appreciate, I use options to potentially generate additional income every month — or even every week!
In fact, I recently collected...
💰 US$1,660 in Options Premium in Just ONE Month!
And that's one of the reasons I continue to prefer US-listed ETFs. 😃
For my personal investing approach, the flexibility to combine long-term ETF growth while generating additional options income is something I value tremendously.
The new SGX-listed ETF trading lines don't currently offer comparable liquid options markets for executing the same approach.
And this brings me to another question...
But Chloe, What About the Potential 40% US Estate Tax?
Just because I prefer US ETFs doesn't mean I ignore estate planning!
One of the ways I approach this is through term life insurance.
For example, depending on your age, health, coverage period and insurer, S$1 million of term life insurance coverage may cost approximately S$50–S$100 per month for some healthy Singaporeans in their 30s.
Now, remember the US$1,660 in options premium I collected in one month?
That's enough to potentially fund several years of term insurance premiums! 😉
This is why I find the combination so interesting.
I can potentially generate cash flow from my ETF portfolio, use part of that income to fund my insurance premiums, and provide additional financial protection for my loved ones.
For me, it's about creating a strategy that balances wealth creation, cash flow and financial protection.
💚 Want to Learn How I Generate Additional Income From My ETFs?
If there's one thing I want you to take away from this newsletter, it's this:
Your ETFs don't necessarily have to sit in your portfolio waiting for capital appreciation. You can also explore using options to generate additional cash flow from them!
And that's exactly what I teach in my FREE 2-Hour Options to Freedom Masterclass!
I'll walk you through how options work, how I combine them with ETFs, and how to approach these strategies while managing the risks carefully.
Whether you're completely new to options or have already been investing in ETFs for years, this masterclass will help you explore another way to make your investment portfolio work harder for you!
Remember, building wealth isn't just about how much you make.
It's also about how much you keep, how you manage your risks, and how you use your investments to create the financial freedom you desire!
Happy investing!
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Arigato!
Chloe
Arigato Investor
Just a quick heads-up 🌸 Except for Instagram, where I may reply if you comment on my posts, I’ll never initiate a private message to you on any platform. So if you ever get a DM from someone claiming to be “Chloe” or “The Arigato Investor” on Telegram or TikTok — please know that’s not me. It’s a scammer impersonating my account. Stay safe and always double-check 💛
The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that the opinions expressed in this newsletter are Chloe's own and do not represent the views of any organization. Always perform your own research and due diligence before investing. 💛
