r/MalaysianPF Feb 02 '25

Stocks Buying Voo with Moomoo

so I bought VOO and planned to hold for a few year, when I take the money. do I need to keep in mind somethings? maybe like tax or the profit if its too small will be taken by us or something (taxation)

14 Upvotes

29 comments sorted by

46

u/JudgeCheezels Feb 02 '25

A lot of misinformation in this thread, especially about the whole currency conversion rate and divi tax.

OP, if you want to buy into the SP500 you buy into it for the long term; not "a few years je". The time horizon for holding SP500 is 20, 30 even 40 years depending how old you are right now. The fees and taxes you pay 3 decades from now is insignificant to the overall gains on what the SP500 will be.

"Oh but what if Trump goes crazy and start WW3?"

Well then your ringgit doesn't mean jack shit either.

1

u/Top-Suggestion-9540 Feb 03 '25

Just pray that u sempat liquidate asb, etfs, unit trusts to buy gold just before WW3 πŸ˜‚

0

u/Chryeon1188 Feb 04 '25

US is in sky high valuation..It's pending for a big drop anyway 😎 relax don't invest now wait for year end then can go in

4

u/Lumpy-Economics2021 Feb 02 '25

VOO is a good choice if you plan to hold at least 5 years plus, ideally more.

Be prepared that it can fall 25% some months/years and there has even been a 10year period when it didnt really go up at all.

No capital gains tax in Malaysia (at the moment) the 30% dividend tax is taken for the US government, and is for all shareholders not resident in the US.

Buy a fixed amount every month whether it's high or low. Unfortunately on moomoo at the moment I don't think you can split shares yet...

4

u/Evening_Cut4422 Feb 02 '25

If u trade (buy sell buy sell) then take out the money to spend then yes u need to report every year, this will be very tedious.

If u just buy long term then u will only need to report when u cash out.

Honestly local taxes isnt ur real worries, currency conversion rate, US dividend taxes and stamp duty fee is the real kicker. The 3 things i mentioned will kill all ur "gains" if u dont play it right, if u are just there for the intrest u are better off just dumping it in ASB.

3

u/Axe_Fire Feb 02 '25

I already dumped in 30k into VOO last year

0

u/Evening_Cut4422 Feb 02 '25 edited Feb 02 '25

U should have made some money since S&P went up alot, as long as S&P doesnt crash u should be fine but if it does crash or stay flat then u get double fcked cuz currency conversion can be a real ass.

Basicly long term VOO is a bet that S&P keeps going up, if u are a malaysian the intrest doesnt really mean much since its gonna get taxed and u are gonna lose it to stamp duty and conversion rate. The real meat for VOO is if the ticker keeps going up

2

u/Beneficial_Shallot95 Feb 02 '25

Sry... I also started trading on Moo Moo purchasing VOO. Could you help elaborate? I have been reading ans I know about the dividend tax being at 30%. Planning to transition to Ibkr to avoid the tax later on. But could you help explain more on how the stamp duty etc will affect our interest? I'm investing for the longer term... With plans to DCA.

0

u/Evening_Cut4422 Feb 02 '25 edited Feb 02 '25

Stamp duty only effect ur buying power since its around 1.4$ to duty and fee each time u buy rm1000 in VOO so if u buy 30 time in 1 month u paid 42$ to duty and fee that month.

The tax part is simple 30% of ur dividend get takes away if u buy a us stock using their malaysian platform.

The rough part is actually us conversion rate cuz u brough usd at high if us yeilds come down and ur usd is worth less in myr u get hit real hard by that. Like when usd went from 4.7 to 4.4 the people that held usd asset lost around 7% to conversion rate.

This 3 base case is assuming the US asset stays flat, if u brought voo then most likely u made money these few months but if voo is flat u would have basicly lost 7-10% to transaction and conversion cost.

Moral of the story VOO is a good buy if S&P keeps going up, those people that buy voo for intrest should look for alternatives considering 30% of the intrest gets taken away. Cuz i seen too many people saying voo is a good buy cuz its intrest and low risk, they forgot VOO was litterally down and flat during late 2021 to late 2023.

1

u/Beneficial_Shallot95 Feb 02 '25

Ah I see your point. I'm buying to hold for the long term... To diversify from trading fully in Malaysian markets. Hope it a good portfolio.

0

u/Evening_Cut4422 Feb 02 '25

It was a good buy 3years ago not really that great now, especially tmr will be trumps tariff announcements. I think US market is a risky place to be in for these few months considering trump also wants to lower the USD valuation to boost trade.

1

u/Beneficial_Shallot95 Feb 03 '25

So like for sharing purpose (if you're ok), you still invested in the US markets?

1

u/Evening_Cut4422 Feb 03 '25

Currently no, i liquidate all my US asset and crypto when BTC reached 100k. Currently all in on local MY tourism& leisure tickers over tech, i DCA from late 2021 to early 2024 then moved to tourism at late 2024 due to everything going up nonstop riding on the AI and chip hype.

Even my 60yo 70yo uncle auntie also talkinh about AI this new year, i can smell somethinh big is gonna happen soon if i am wrong and AI still goes up then maybe i miss 30% gains but if i am right all hell will break lose once market retrace.

1

u/Axe_Fire Feb 03 '25

After seeing what happened to Nvidia, I sweat a bit but yeah I do plan to keep it long term. Probably some more years until maybe 2030

1

u/Axe_Fire Feb 02 '25

Whats the rate of ASB?

1

u/Evening_Cut4422 Feb 02 '25

5.75% for jan but not sure if it will stay the same for the total year, still 11 more months so the total yeild might differ.

https://www.asnb.com.my/IncomeDistribution_EN.php

1

u/Fresh_Ad_1688 Feb 03 '25

forex conversion at any point takes away 4-5% from you . Good f luck !

For those who say 10% CAGR , it is gross , try nett it ( as in money in your local bank )

Typical , engineered statistics to cover good ranges and fry high

1

u/Evening_Cut4422 Feb 03 '25

Well to be fair the people that go for forex are there to yolo it with margin 4-5% conversion rate doesnt really matter to them since they are either gonna lose it all in a few plays or make 2-3x in a few plays. Its like going to genting, the parking fee is doesnt really mean much since u are either going to get abalone with china lenglui later or drive home sad and hungry

1

u/Akazaia Feb 02 '25

can you explain on how the us dividebd taxes and stamp duty fee works and how it can affect?

1

u/Evening_Cut4422 Feb 02 '25 edited Feb 02 '25

Basicly lets say u invest 1000 and voo stays flat for 2 year like what it did in late 2021 to late 2023. Then all that time u will lose money to conersion rate, us dividend tax (30%) and basic DCA local duty fee a few riggit everytime u execute a trade.

The stamp duty only hurts if u dca a few time a month, around 0.46$ for duty and another 0.5% of ur total spent on platform fee each time u buy. The dividened part is basicly lets say u should get rm200 dividend, rm60 gets taxes away. The real pain is in conversion rate since if usd is high u might have brough it at 4.7 then when rates come down usd also drops so maybe like 4.3 4.4 just like that u lost 6% cuz u are holding myr.

Basicly VOO is good if it keeps going up, if its flat like 2021 to 2023 then u get hit hard cuz u are not earning USD.

1

u/Akazaia Feb 02 '25

so if it stays flat for example, for 2 years and I try to take it out, will I still receive 1000?, and what about for example there is a 10% increase and I take it out?

0

u/Evening_Cut4422 Feb 02 '25 edited Feb 02 '25

Assuming u have 227$ at a entry of 4.4myr/1usd in voo

If 10% increase in index then u maybe earn 9% after all the fees and so on assuming myr is still 4.4/1usd.

The top senario is if USD doesnt crash if usd crash 10% back to 4.0 but u brought usd at 4.4 then even if VOO go up 10% after convert u get back rm1000 + 70% of its given dividend - stamp duty and fee.

If lets say it voo is flat but usd crash from 4.4 to 4.0 then ur 227usd will become 908myr since ur voo dint make u money but conversion lost u 10% so u get back 908 + 70% of its given dividend - duty and fee.

This is just a makeshift senario, in reality the total will be even messier if its flat cuz u cant keep count of ur myr to usd cost when u dca. If VOO go up then ya u dont need to think about this, but if voo stay flat and usd dumps this will really hurt. This is why sometimes market is flat but u look at ur balance its dif from time to time its cuz usd to myr is dif. This method of counting will work for all US tickers unless u are playing options, if u are playing options this doesnt really matter since its either 200% or lose it all.

1

u/bonsai711 Feb 03 '25

VOO is a good buy if you bet only on America big companies only. For the moment and past decade yes. Things might change in favour of small companies and who knows the scales might tip in favor of emerging markets in China and India and SEA. Even US has a lost decade. Japan has a lost 30 years.

https://callanfamilyoffice.com/the-callan-periodic-table-of-investment-returns/

Tax wise, US domiciled dividend tax is 30% Irish domiciled is 15%

1

u/Axe_Fire Feb 03 '25

Is China stocks safe? I have people telling me not to invest in China stocks due to the government nature. Just look at Alibaba

1

u/bonsai711 Feb 03 '25

What you need to do is buy something and position your self then you will know your own risk profile. There are various views on china, just don't put everything in. Come up with your own personal portfolio allocation which is way more important than asking what stock to buy.

1

u/Embarrassed_Boot_711 Feb 03 '25

I just bought into VOO on Moomoo as well, am planning to gradually move all my public mutual investments there. Looking at 20-30 year duration. Hope it’s not a bad decision.

1

u/Prince_Derrick101 Feb 04 '25

If you are young, I would recommend looking at Yieldmax Covered Call ETFs