Holdings
- SPDR Barclays Capital High Yield Bnd ETF, JNK
- iShares Preferred and Income Securities ETF, PFF
- Vanguard Health Care ETF, VHT
Finally completed the setup of my satellite portfolio with the first 3 ETFs. When I first conceived the idea of having a satellite portfolio, my plan was to have 3 ETFs, equally weighted, focusing on fixed income products. Instead of picking individual stock, I chose ETF so that the portfolio will be diversified despite its small size. After some considerations, I noted that withholding tax will eat into my returns over the long term, and so I will be adjusting my portfolio to include both fixed income and growth ETFs in order to avoid withholding tax as much as possible.
On the topic of withholding tax, most would know that US has a 30% withholding tax on dividend income and the recommended way is to buy Ireland-domiciled ETFs which would reduce withholding tax to 15%....
