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Below are my 3 ETFs to invest in Germany via Trade Republic as I will need to pay tax here (first 800 Euro is tax exemption). This is my first time ever to invest in stocks and I will hold it for 5+ years. If anyone has any comments, I appreciate that.

  • iShares Core S&P 500 UCITS ETF USD (Dist) - WKN:  622391  - TER: 0.07   (dividen: 0.42 / price: 31.22) = 35% 
  • iShares MSCI EM UCITS ETF (Dist)  - WKN A0HGWC - TER: 0.18 - dividen: 0.62  / price: 43.80 = 20% 
  • iShares Core MSCI World UCITS ETF USD (Acc) - WKN: A0RPWH - TER: 0.20 = 45%
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I do not comment about the choice of these ETFs, I think they are as good or as bad as others.

Instead, I just give some ideas to consider.

Be aware that the distributing ETFs distribute dividends which you'd have to invest again. This will probably be tax-efficient as you distribute the gains to the next years instead of having them at the time you sell them.

The accumulating ETF accumulates the dividends. This means their gains are taxed via the relatively new construct called "Vorabpauschale": the part of the gains which you'd have gained via very safe things like Government bonds are taxed even if you don't sell the ETF. But as of 2021, the rate of these Government bonds are negative, and thus the "Vorabpauschale" won't be calculated.

So if you want to make the maximum possible use of the tax exemption of 801 €, for the first years get more distributing ETFs and reinvest their dividends.

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    Thanks, yes, my plan is to reinvest any dividends and monthly few hundred Europe to the accumulating ETF. Jan 28 at 10:37

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