Investing Experts

Passive investing in Ireland, the ETF capital of Europe

11 snips
Dec 5, 2024
Dan Malone, a financial advisor and accountant based in Dublin, shares his expertise on passive investing in Ireland, known as the ETF capital of Europe. He discusses the shift toward index funds and the surge of asset managers in the country due to favorable tax treaties with the U.S. He highlights the potential of undervalued Irish banks and the extreme taxation challenges faced by local investors. Malone emphasizes the importance of early financial planning to prepare for retirement, advocating for a cultural shift in how investing is discussed in Irish society.
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INSIGHT

Irish ETF Paradox

  • Ireland is the ETF capital of Europe, attracting major asset managers like BlackRock and Vanguard.
  • Ironically, Irish citizens lag in ETF adoption despite this industry leadership.
ADVICE

ETF Strategy

  • Use a diversified ETF approach with S&P 500, Europe, and Emerging Markets funds for control over regional weightings.
  • Analyze European ETFs yearly to find the most competitive expense ratios.
INSIGHT

Country ETFs

  • Dan Malone is cautious about Ireland ETFs due to limited diversification but sees potential in undervalued Irish bank stocks.
  • He favors the US S&P 500 for long-term investing due to his conviction in North American companies.
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