Trading S&P 500

[kctan]

Hi,

May I know if I were to trade S&P 500 ETF, what are the available online brokers that I can use? Is there local provider to trade US ETF?

I appreciate any comments, thank you.

[Liukt]

Hi anyone investing in s&p 500 index fund? Does Singaporean pay tax when we sell to lockin capital gains?
Thank you

There is vanguard find that tracks s&p 500

[weijian]

ETFs are traded like any other stock counter. Hence most of them can be traded via most Singapore brokerages via their respective online platforms. The usual brokerage charges apply. You can refer to the 2 links below to download documents and information of the list of ETFs available on SGX:

ETF and their prices: http://www.sgx.com/wps/portal/sgxweb/hom...ities/etfs
Basic information and factsheets of ETFs on SGX: http://www.sgx.com/wps/portal/sgxweb/hom...ities/etfs

As to the question of tax, below is a snippet (pg 16) from SPDR S&P500 prospectus (dated Jan 2013)

The US federal income taxation of a Non-US Holder depends on whether the income that the Non-US Holder derives from the Trust is “effectively connected” with a trade or business that the Non-US Holder conducts in the United States. If the income that a Non-US Holder derives from the Trust is not “effectively connected”
with a US trade or business conducted by such Non-US Holder, distributions of “investment company taxable income” (as described in the US Prospectus) to such Non-US Holder will generally be subject to US federal withholding tax at a rate of 30% (or lower rate under an applicable tax treaty). There is currently no income tax
treaty between the US and Singapore. Provided that certain requirements are satisfied, this withholding tax will not be imposed on dividends paid by the Trust in its taxable years beginning before January 1, 2014, to the extent that the underlying income out
of which the dividends are paid consists of US-source interest income or short-term capital gains that would not have been subject to US withholding tax if received directly by the Non-US Holder (“interest-related dividends” and “short-term capital gain dividends”, respectively). It is unclear whether any legislation will be enacted
that would extend this exemption from withholding to the Trust’s taxable years beginning on or after January 1, 2014.

A Non-US Holder whose income from the Trust is not “effectively connected” with a US trade or business will generally be exempt from US federal income tax on capital gain dividends and any amounts retained by the Trust that are designated as undistributed capital gains, as described in the US Prospectus. In addition, such a
Non-US Holder will generally be exempt from US federal income tax on any gains realized upon the sale or exchange of Units.

If the income from the Trust is “effectively connected” with a US trade or business carried on by a Non-US Holder (and, if required by an applicable tax treaty, is attributable to a US permanent establishment maintained by the Non-US Holder),
any distributions of “investment company taxable income,” any capital gain dividends, any amounts retained by the Trust that are designated as undistributed capital gains and any gains realized upon the sale or exchange of Units will be subject to US federal income tax on a net income basis, at the rates applicable to holders of
Units who are US persons for US federal income tax purposes.

[Liukt]

Thank you weijian.

[viruskbs]

ETFs are traded like any other stock counter. Hence most of them can be traded via most Singapore brokerages via their respective online platforms. The usual brokerage charges apply. You can refer to the 2 links below to download documents and information of the list of ETFs available on SGX:

ETF and their prices: http://www.sgx.com/wps/portal/sgxweb/hom...ities/etfs
Basic information and factsheets of ETFs on SGX: http://www.sgx.com/wps/portal/sgxweb/hom...ities/etfs

As to the question of tax, below is a snippet (pg 16) from SPDR S&P500 prospectus (dated Jan 2013)

The US federal income taxation of a Non-US Holder depends on whether the income that the Non-US Holder derives from the Trust is “effectively connected” with a trade or business that the Non-US Holder conducts in the United States. If the income that a Non-US Holder derives from the Trust is not “effectively connected”
with a US trade or business conducted by such Non-US Holder, distributions of “investment company taxable income” (as described in the US Prospectus) to such Non-US Holder will generally be subject to US federal withholding tax at a rate of 30% (or lower rate under an applicable tax treaty). There is currently no income tax
treaty between the US and Singapore. Provided that certain requirements are satisfied, this withholding tax will not be imposed on dividends paid by the Trust in its taxable years beginning before January 1, 2014, to the extent that the underlying income out
of which the dividends are paid consists of US-source interest income or short-term capital gains that would not have been subject to US withholding tax if received directly by the Non-US Holder (“interest-related dividends” and “short-term capital gain dividends”, respectively). It is unclear whether any legislation will be enacted
that would extend this exemption from withholding to the Trust’s taxable years beginning on or after January 1, 2014.

A Non-US Holder whose income from the Trust is not “effectively connected” with a US trade or business will generally be exempt from US federal income tax on capital gain dividends and any amounts retained by the Trust that are designated as undistributed capital gains, as described in the US Prospectus. In addition, such a
Non-US Holder will generally be exempt from US federal income tax on any gains realized upon the sale or exchange of Units.

If the income from the Trust is “effectively connected” with a US trade or business carried on by a Non-US Holder (and, if required by an applicable tax treaty, is attributable to a US permanent establishment maintained by the Non-US Holder),
any distributions of “investment company taxable income,” any capital gain dividends, any amounts retained by the Trust that are designated as undistributed capital gains and any gains realized upon the sale or exchange of Units will be subject to US federal income tax on a net income basis, at the rates applicable to holders of
Units who are US persons for US federal income tax purposes.

Can some experienced person help me translate this in simple english
e.g.
if I buy S&P etf & the company announces a dividend of 4% which amounts to US$10k. how much of the dividend will be held by the federal authorities.

[Shrivathsa]

30% will be held back

[lazysingaporean]

Sorry to dig up an old thread. But, anyone knows what will be the conversion rate when we buy S&P 500 from a local brokerage like POEMS?

[Shrivathsa]

The currency conversion will be at the brokerage rate specified by the broker.

For example, if today's rate on Yahoo is 1.397, the brokerage (POEMS in this case) has specified that the rate is 1.399.

However, the caveat is that the rate is "At a prevailing rate of exchange determined by PSPL."

The second thing to note is that "However the conversion rate will be based on the day of payment."

If there is a wild swing, like for example, on the day you bought it is 1.36 and the rate on the date of payment 3 days later is 1.399, the rate of 1.399 will be applied, in short, you may have to pay higher than you thought (The reverse is also possible)