ETF for United States treasuries

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galway_blow_in

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Can anyone recommend an ETF provided by either Ishares or vanguard etc which tracks seven year United States treasuries?, under five years also an option

I don't want hedged as the negatives outweigh the positives in my opinion, want liquidity and size of fund , I don't want a ten or twenty year tracker as the disposal rules mess with it
 
SXRL, but there will be different tickers on different exchanges. You can search by the ISIN (IE00B3VWN393) to see them all, on Degiro for example.
 
In fact you can see them here, try one a different exchange.
 

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I'm looking at US treasuries at the moment myself too.

However, I'm looking at a direct purchase versus an ETF.

I'm in a non-standard situation in that I work cross border in Derry and claim transborder relief. As such, it's more beneficial for me to pay income tax on investment returns versus CGT. Therefore, I'm looking at paying a premium for US treasury bonds with a higher coupon.

Specifically, I'm looking at the bonds maturing in May 2030 with a coupon of 6.25%. At current pricing, I'd be paying a little over 8% premium over face value.

This would give me 5 years of higher income, on which my personal circumstances result in lower tax rates (and no PRSI) and would have that 8% premium to write off against my CGT bill in 5 years time (assuming I hold to maturity).

In short, I'm similarly interested to you in the 5-7 year term treasuries but am considering an approach that takes advantage of my own circumstances in relation to tax.

That's one advantage of direct purchases of bonds - you can choose to expose yourself to income tax, as I'm considering, or more to CGT by purchasing bonds with a low coupon and big discount to face value.
 
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Bond ETFs are not subject to CGT. They are subject to income tax (exit tax) at 41% on gains and dividends.
 
So wouldn't you expose yourself 100% to income tax with a bond ETF, which is what you want?
 
Corola said:
So wouldn't you expose yourself 100% to income tax with a bond ETF, which is what you want?
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My situation is unique in that I work cross-border and claim transborder relief.

As such, I don't want to pay the special 41% income tax payable for funds. I want to pay generic income tax.

Basically, I want to pay the lower rate I'm liable to which varies depending on the percentage of income received through my investments versus overall worldwide income (including earnings through my Northern Ireland employment). For example, for 2023, my overall tax on options trading, interest from Interactive Brokers, forex profits and US dividends worked out at 20.9% despite all being earned within what would usually be the 40% tax band. This 20.9% includes USC and I'm exempt from PRSI.
 
ronaldo said:
I'm looking at US treasuries at the moment myself too.

However, I'm looking at a direct purchase versus an ETF.

I'm in a non-standard situation in that I work cross border in Derry and claim transborder relief. As such, it's more beneficial for me to pay income tax on investment returns versus CGT. Therefore, I'm looking at paying a premium for US treasury bonds with a higher coupon.

Specifically, I'm looking at the bonds maturing in May 2030 with a coupon of 6.25%. At current pricing, I'd be paying a little over 8% premium over face value.

This would give me 5 years of higher income, on which my personal circumstances result in lower tax rates (and no PRSI) and would have that 8% premium to write off against my CGT bill in 5 years time (assuming I hold to maturity).

In short, I'm similarly interested to you in the 5-7 year term treasuries but am considering an approach that takes advantage of my own circumstances in relation to tax.

That's one advantage of direct purchases of bonds - you can choose to expose yourself to income tax, as I'm considering, or more to CGT by purchasing bonds with a low coupon and big discount to face value.
Click to expand...
You should absolutely buy direct if you can rather than via an ETF, unfortunately my broker doesn't allow it, I can only buy Eurozone government debt with De Giro, it's a very cheap broker but pretty rubbish
 
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