By MoneyBees
See what an ETF's expense ratio, your platform fee and dividend withholding tax take from your returns over the years, and how a US-domiciled fund at 30% compares with an Ireland-domiciled one at 15%.
From the fund's factsheet or prospectus.
0 if your broker charges none.
Value after 20 years
$238,560
from $130,000 put in
Lost to costs and tax
$25,563
against $264,122 with none
Expense ratio alone
$6,100
0.2% a year
Over 20 years, withholding tax takes $19,463, the expense ratio $6,100 and the platform fee $0. Each cost comes out every year, so you also lose the growth that money would have earned.
A 2% dividend yield taxed at 30% costs 0.60% a year, more than the 0.2% expense ratio. Singapore does not tax the dividends you receive, so the tax withheld abroad is a final cost.
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| Domicile | Withholding | After 20 years | Lost to tax |
|---|---|---|---|
| US-domiciled ETF | 30% | $238,560 | $19,463 |
| Ireland-domiciled ETF holding US shares | 15% | $247,780 | $9,956 |
| No withholding tax | 0% | $257,434 | $0 |
US dividends paid to a Singapore investor are withheld at 30%; Singapore has no income tax treaty with the US. An Irish fund pays 15% on US dividends under the Ireland-US treaty. Funds may meet other costs too.
S$10,000 now and S$500 a month for 20 years at 6% a year, no dividends. With a 0.12% expense ratio you end with about S$260,085. At 0.85% you end with about S$237,063. The 0.73% gap costs you about S$23,000.
With a 2% yield, a US-domiciled ETF loses 0.6% a year to withholding tax and an Irish one 0.3%, before the expense ratio.
MoneySense notes that tracking difference, the gap between the fund's return and its index, includes the TER and shows how well the fund is run. Bid-ask spreads and brokerage also cut your return.
If your US-situated assets are worth more than US$60,000 when you die, the IRS requires your executor to file a US estate tax return. Check which of your holdings count.
Figures checked 3 Oct 2026.
The total expense ratio (TER) is the fund's yearly cost as a percentage of its assets. MoneySense says it covers the manager's fee and other fund expenses and is taken directly from the fund's assets, so you never see a bill.
Investing S$10,000 and S$500 a month for 20 years at 6%, a 0.12% TER leaves about S$260,085 and a 0.85% TER about S$237,063. The difference is about S$23,000.
30% on dividends. The IRS taxes most US income paid to foreign persons at 30% unless a treaty lowers it, and Singapore has no income tax treaty with the US.
The Ireland-US tax treaty cuts the US withholding rate on dividends to 15%, so an Irish fund holding US shares loses 15% of those dividends instead of 30%.
No. IRAS does not tax foreign dividends received by resident individuals, and gains from buying and selling shares are generally not taxable. The tax withheld abroad cannot be claimed back against Singapore tax.
No. Platform or custody fees, brokerage and the bid-ask spread add to it. MoneySense suggests comparing tracking difference too, which includes the TER.
The IRS requires an estate tax return for a non-US person whose US-situated assets are worth more than US$60,000 at death. Check which of your holdings count as US-situated.
It compounds monthly at your price growth plus the dividend yield after withholding, minus the TER and platform fee. It then adds the costs back one at a time to show what each takes.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).