I’m currently investing in US market using IBKR with 70% index ETF (QQQ, VOO, etc.) and 30% bond ETF split (only BND at the moment).
- I’ve done this for two years
- I’m aware that a 30% withholding tax is applied to all dividends from my bond ETF which makes the investment less attractive
My questions are:
- Should I stop investing in US bond ETFs since the 30% dividend tax makes it less attractive? If so, what alternatives do I have for my 30% bond portfolio target?
- Though bond is generally considered safe, my BND has fluctuated quite a lot in the past two years (20%-ish fluctuation). Currently I buy monthly with fixed amount. I wonder if I should be more selective in the time of buying, or I should continue with regular monthly buying? (dollar averaging)