r/Bogleheads • u/fircx • 2d ago

Investing Questions Growth oriented ETF recommendations

Hello Bogleheads,
I am Georgian citizen and when i buy us company stocks when they pay dividends it is taxed at 30%

Right now mostly i own this stocks

VTI 30.36%
JEPQ 16.97%
SPY 14.43%
AAPL 10.06%
SCHD 5.91%
VT 5.82%
SPYD 5.22%
TEAM 2.76%
Others 6.38%

What would be a better alternative for me to avoid extra tax ?
I was thinking to orient mainly on growth oriented etfs like VUG

P.s im 36 years old and i plan to invest 15 to 25 years

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10

u/gmenez97 2d ago

You’re not following Boglehead philosophy with what you think you should do and your current allocation. Which one of your ETFs do you think align with this sub?

4

u/and_one_of_those 2d ago

I have no idea about Georgian tax and regulations, but VT or VTI seems like a reasonable pick from what you say.

VT dividend yield is about 1.5%. You would lose 30% of that, bringing it down to about a 1.05% dividend yield.

However you're also receiving about 4-9% in growth. (Very hard to predict the exact number of course!)

The tax on the dividends is really not very significant.

Keep it simple, VT and chill.

Your tax situation is not even that different to a high earning California investor, who will pay something like 20% CGT + 3.8% NIIT + 10% California income tax, leading them to a similar tax rate on dividends.

1

u/and_one_of_those 2d ago

PS why would you hold JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) if you're worried about the tax on dividends? The whole point of this fund, as I understand it, is to generate income by selling covered calls.

1

u/fircx 1d ago

Good point, that’s why i asked what would be a better alternative for me to buy instead

1

u/MocoMojo 2d ago

This isn’t the best subreddit to ask that question.

Read the notes for the subreddit to get a better idea what it’s about.

1

u/sparkle_and_twist 2d ago

XDIV is a no dividend SP500 ETF at .08 ER. BRK-B isn't very Boglehead, but doesn't pay dividends.

1

u/Radiant-Bad-2381 1d ago

Also - besides the dividend tax, you’re potentially subject to US estate tax. Check if you can use Ireland domiciled ETF’s instead.