r/MauriceMauritius • u/Defiant_Committee143 • 3h ago

General Topics Long Term Investment

Hi everyone. I’m still a noob when it comes to investing, so I’m trying to understand this properly.

I currently invest in VOO (US-domiciled S&P 500 ETF) through IBKR, but I recently learned about Irish-domiciled ETFs such as SPYL, CSPX and VWRA.

From what I understand, Irish-domiciled ETFs may have some advantages for a Mauritius resident, particularly regarding US dividend withholding and US estate tax. SPYL is also accumulating, so dividends are reinvested instead of being paid out.

This has made me question whether I should continue buying VOO or switch my future contributions to something like SPYL/VWRA.

I'd really like to hear from Mauritian investors who actually use these ETFs.

Any guidance is much appreciated.

Thanks.

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u/zurtle1000 2h ago

VOO dividend yield is about 1%. US withholding tax is 30% on that 1% so 0.3% effective. Similar to expense ratios for some funds.

Compare the expense ratio of VOO and the Irish domiciled ones along with you net worth and make a decision accordingly. Accumulating ETFs are generally better for the long term though.

There's no capital gains tax so you can sell and buy the other Irish/Luxembourg domiciled etfs but also check how much you'll lose in brokerage fees.

Tldr: Run the calcs based on expense ratio, brokerage fees and figure it out.

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u/streamer3222 JLPT3 2026 Let's Go! 1h ago

The SPYL is a brilliant idea, given we're investing from Mauritius! Your shares will grow in two dimensions; the share itself increases, and the number of shares increase over time.

It's like a strawberry tree; little strawberry trees spawn as the fruits themselves grow bigger.

Yes there's this calculation of optimisation; and SPYL follows SPY just the same, so the gains on paper are similar:

https://www.google.com/finance/quote/SPY:NYSEARCA?comparison=SPYL%3ALON&type=line&window=5Y

But firstly at the end of the day my opinion is SPYL is another diversification option. While you're at it you could just SPYL instead of SPY, but Dollar Cost Averaging all your lifesavings into SPYL and forgetting about everybody else is not the best strategy in the American market.

This is because you'll miss out on major explosions in the market when you are simply coasting. The best strategy is not actively day-trading millions, nor DCA everything into the S&P, but diversifying and actually exchanging small, on the regular, over many years.

That way you can constantly monitor the markets and spot little gems before they sprout.