iShares International Select Dividend ETF IDV

ISInvesting Simplified - Professor G17d ago

BULL$IDVLong-termValuation

foreign tax credit needs taxable placement to offset withholding.

IDV should be held in a taxable brokerage because the foreign tax credit can only flow through outside retirement accounts.

Foreign dividend withholding reduces cash flow, but the IRS foreign tax credit can cancel most of that drag when held in taxable. In Roth or traditional IRA, the withholding is permanently lost because the credit cannot be claimed.