ASX ETF - like S&P500 = NO FIF ?

Just a quick question and i'm sure someone will know. Is there an index ETF on the ASX exchange that tracks the S&P500? I'm looking for a direct ticker stock to buy and not through some managed fund. The reason being I find there's a lack of transparency with NZ managed funds that do advertise buying US equities & ETFs but do not mention about FIF or the full tax implication.

Yes there is.

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Originally Posted by Snow Leopard

Yes there is.

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Which ticker symbols? Thanks.

I presume you have managed to search the ASX website for the options available by now.

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Originally Posted by Snow Leopard

I presume you have managed to search the ASX website for the options available by now.

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I've been looking and came across IVV. I also made a quick phone call to Jarden and the adviser says none of those ETFs that have a majority foreign (outside NZ/ASX) exposure holding equities will be exempted from FIF. IVV also has a franking rate of 0% which will be like most ETFs that hold foreign content and therefore will never be exempted from FIF as ASX franking is a requirement.

Anotherwords, the adviser said to me, "You can't contract yourself to pick foreign holdings through a conduit (the ETF) when ultimately, the foreign holding is of non NZ/Aus based investments and therefore IRD will have in every right, to impose FIF". After all, the whole point of FIF is to tax overseas share investments that have a focus on capital gain growth (as NZ has no format CGT and such gains would be tax free without FIF).

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Originally Posted by SBQ

I've been looking and came across IVV. I also made a quick phone call to Jarden and the adviser says none of those ETFs that have a majority foreign (outside NZ/ASX) exposure holding equities will be exempted from FIF. IVV also has a franking rate of 0% which will be like most ETFs that hold foreign content and therefore will never be exempted from FIF as ASX franking is a requirement.

Anotherwords, the adviser said to me, "You can't contract yourself to pick foreign holdings through a conduit (the ETF) when ultimately, the foreign holding is of non NZ/Aus based investments and therefore IRD will have in every right, to impose FIF". After all, the whole point of FIF is to tax overseas share investments that have a focus on capital gain growth (as NZ has no format CGT and such gains would be tax free without FIF).

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SBQ. If you are looking for Aussie instruments that are exempt to the FIF regime then arguably the best place for you to check is with the IRD direct. There is a specific webpage you can refer to in the first instance (provided below). The FIF regime has quite a few idiosyncrasies which makes determining whether an instrument comes under the provisions or not much more difficult. Sadly it's not as straightforward as simply checking that the entity is in the ASX200!

https://www.ird.govt.nz/income-tax/i...ent-fund-rules

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Originally Posted by SBQ

I've been looking and came across IVV. I also made a quick phone call to Jarden and the adviser says none of those ETFs that have a majority foreign (outside NZ/ASX) exposure holding equities will be exempted from FIF. IVV also has a franking rate of 0% which will be like most ETFs that hold foreign content and therefore will never be exempted from FIF as ASX franking is a requirement.

Anotherwords, the adviser said to me, "You can't contract yourself to pick foreign holdings through a conduit (the ETF) when ultimately, the foreign holding is of non NZ/Aus based investments and therefore IRD will have in every right, to impose FIF". After all, the whole point of FIF is to tax overseas share investments that have a focus on capital gain growth (as NZ has no format CGT and such gains would be tax free without FIF).

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SBQ. If you are looking for Aussie instruments that are exempt to the FIF regime then arguably the best place for you to check is with the IRD direct. There is a specific webpage you can refer to in the first instance (provided below). The FIF regime has quite a few idiosyncrasies which makes determining whether an instrument comes under the provisions or not much more difficult. Sadly it's not as straightforward as simply checking that the entity is in the ASX200!

https://www.ird.govt.nz/income-tax/i...ent-fund-rules

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Originally Posted by FTG

SBQ. If you are looking for Aussie instruments that are exempt to the FIF regime then arguably the best place for you to check is with the IRD direct. There is a specific webpage you can refer to in the first instance (provided below). The FIF regime has quite a few idiosyncrasies which makes determining whether an instrument comes under the provisions or not much more difficult. Sadly it's not as straightforward as simply checking that the entity is in the ASX200!

https://www.ird.govt.nz/income-tax/i...ent-fund-rules

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Thanks for the link to IRD - it just confirms what the financial adviser said to me today. IVV is clearly not FIF exempt. The end of the story is this, the well regarded index ETF S&P500, which comprises of say 99% foreign (or maybe 1% NZ / Aus companies in it?) is a far cry to expect it to be FIF exempted. To be really FIF exempt, you basically have to own NZX listing and some ASX listings.

Anyone dealt with this platform?
https://blackbullmarkets.com/en/trading/index-cfds/

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Originally Posted by kiora

Anyone dealt with this platform?
https://blackbullmarkets.com/en/trading/index-cfds/

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A "Credit For a Difference" has been spoken in another thread (re: the collapse of Bill Hwang's Archegos Hedge Fund) and it may be the CFD terms used in NZ/Australia may not be the same as in the US. I am uncertain how CFD for the retail market in NZ/Aus would apply to the global market when CFD are illegal to retail traders in the US; again it may be due to the difference in terminology like many things. Ie. A "Bank Cheque" issued by a bank in NZ vs "Bank Draft" issued by a bank in the US (both are the same instrument with different wording. Sometimes I come across the same wording in finance but has a different meaning abroad. The CFD does not mean taking a 'short position'.

Also as mentioned in a different thread, the issue of CFDs has conditions that affect the outcome of these contracts. Namely 'dividends' as mentioned in that blackbullmarket link, affecting the outcome for asset price and the timeliness when these contracts expire.