ETFs on ASX

[DeepBlue]

Hey there fellow investor,

I'm pretty new to the investing game, which you'll discover shortly. I'm wanting to put some money into the VAS ETF, but just have a couple of queries regarding that.

Currently I just have an ASB securities account, and so my thought was that I could buy the ETS using that. But then I thought, "is this the ideal setup?", since I'm dealing with a share on the ASX. That may mean things like 1)currency risk (VAS is AUD i think... and im using NZD) and 2)taxation issues could creep in... and I'm not clear on what the implications of those two things would be, if I go ahead.
So my question is, what is the ideal setup for what I'm wanting to do? I.e. should I go as far as opening an Australian bank account or something? If I earned dividends , I'd just want them to be reinvested.. not interested in anything coming to my bank account.

Any input for my confused self would be much appreciated.

[G on]

Lots of info here on all the points you have listed. Currency risk : With NZD so high this risk would have to be minimal. The AUS economy and what shape that is in would be the bigger risk.
Read up on FIF tax system at IRD site.
See if the ETF you want has a dividend reinvestment policy. That way no Aus bank account is needed but you still pay tax in NZ on the dividend earned. You may still be able to have it paid to an NZ A/c if you later want to. Check on the ETF website for that facility.
I personally think an ideal setup for an etf is to have weekly or monthly payments to buy into it. The logistics of doing it from NZ ?
Start reading up and I'm pretty sure you will get clarity very quickly.

[DeepBlue]

Sweet, thanks for that - mucho helpful. :t_up:

[Onion]

See if the ETF you want has a dividend reinvestment policy. That way no Aus bank account is needed but you still pay tax in NZ on the dividend earned.

I looked at the DRP rules for a UBS ETF. It states:



Participation in the Plan is optional and open to all Unitholders who have a Registered Address in Australia. However the Responsible Entity has absolute discretion to accept or refuse an application at any time and without providing a reason.

Does anyone know what a "registered address" is?

[G on]

I have the dividend direct credited to an Aussie bank from my STW:ASX etf. I went to Linkmarket to see if there is an option of participating in the DRP which there is. BUT...as for the registered address part? Best would be to email and have them clarify that point before investing if it is a deal breaker.

[Onion]

I have the dividend direct credited to an Aussie bank

I don't have an Aussie bank account.

Does anyone know if dividends from an Aussie ETF can be paid into a ANZ Securities multi-currency account?

I know I could call ANZ Securities, but it is after business hours and I'm sure someone on here must know :)

[stoploss]

I don't have an Aussie bank account.

Does anyone know if dividends from an Aussie ETF can be paid into a ANZ Securities multi-currency account?

I know I could call ANZ Securities, but it is after business hours and I'm sure someone on here must know :)

I fwd them my dividend cheques and they deposit them . Don't know about an electronic payment option however.