If you are Malaysian and invest in the S&P 500, there is one small tax difference that can quietly reduce your returns every single year.

And from 13 October 2026, there will be a much easier way for Malaysians to reduce that tax leakage.

The ETF is XUS — Xtrackers S&P 500 UCITS ETF, an Irish-domiciled S&P 500 ETF that will trade on the Singapore Exchange in SGD.

US ETF vs Irish ETF: what is the difference?

Most Malaysians buying the S&P 500 through the US market use US-domiciled ETFs such as VOO or SPY.

The problem is dividends.

When a US-domiciled ETF pays dividends to a Malaysian investor, the US generally withholds 30% of the dividend. The IRS applies a 30% withholding rate to US-source dividends received by non-resident investors unless a lower treaty rate applies.

An Irish-domiciled ETF works differently.

Instead of you directly receiving the US dividend, the Irish fund receives dividends from the US companies. Under the US-Ireland tax treaty, qualifying portfolio dividends received by the Irish fund are generally subject to 15% withholding tax instead of 30%.

In simple words:

• US-domiciled ETF → 30% dividend withholding tax

• Irish-domiciled ETF → 15% dividend withholding tax at fund level

This does not mean your total return suddenly improves by 15% a year. The difference applies only to dividends.

The S&P 500 dividend yield is currently around 1.05%.

On RM100,000:

• 30% withholding costs about RM315/year

• 15% withholding costs about RM158/year

• Difference: roughly RM157/year

If dividend yields rise, the savings become larger. More importantly, that money stays invested and compounds over decades.

XUS ETF on Singapore Stock Exchange

XUS is the new ETF to be listed on Singapore Stock Exchange (SGX) that will track the Xtrackers S&P 500 UCITS ETF 4C:

• The underlying fund of this ETF physically owns the S&P 500 stocks, fully replicates the S&P500 index;

• All dividends will be automatically reinvested; and

• Total expense ratio is only 0.03%.

XUS is expected to begin trading on 13 October 2026.

Why is this important for Malaysians

Moomoo Malaysia already supports trading of SGX-listed stocks and ETFs, while Moomoo Securities Malaysia is a Capital Markets Services Licence holder regulated by the Securities Commission Malaysia.

Previously, one of the most common ways Malaysians accessed Irish-domiciled ETFs was through overseas brokers such as Interactive Brokers. IBKR accepts Malaysian residents, but it is not licensed by the Securities Commission Malaysia; it operates under its overseas regulatory entities.

XUS therefore makes Irish-domiciled S&P 500 exposure much more accessible through a locally regulated Malaysian brokerage account.

Important Note: XUS trades in SGD

One important detail: XUS will trade on SGX in Singapore dollars.

Your MYR will be automatically converted to SGD in your Moomoo app, when you invest in XUS ETF.

So your investment return in XUS ETF will be affected by 2 things:

• S&P500 return; and

• Currency return of SGD to MYR.

Historically, SGD has strengthened against MYR in the long term, ~42% appreciation since 2006. Past currency performance, of course, does not guarantee the future.

Moomoo new-user promotion

Moomoo Malaysia's current new-user campaign runs until 9 October 2026, 9:59pm.

The standard rewards currently include:

• RM1,000 deposit: RM100 in cash/stock-cash coupons

• RM3,000: additional RM100 Apple fractional share

• RM10,000: additional RM300 Apple fractional share

• RM40,000: additional RM1,000 Apple fractional share

The Apple rewards require the qualifying net deposit to be maintained for 60 days, and availability is limited.

DoitDuit also has a DOITDUIT EXCLUSIVE RM50 Apple share offer when you deposit RM1,000 (only for first deposit).

To claim it:

1. Open a Moomoo Malaysia account using our referral link: https://start.moomoo.com/00Joxa

2. Download Moomoo app and login to your Moomoo account.

3. Before your first deposit, search “Special Deposit” inside the app.

4. Tap Join Now and enter code DOITDUIT8AH.

5. Deposit at least RM1,000.

6. Check the Special Deposit page for the applicable unlock conditions.

In total, you can get RM100 trading vouchers + RM50 Apple share when you deposit RM1,000 into Moomoo and maintain it for 60 days. This is only applicable for new Moomoo users.

Final thoughts

For Malaysian investors who already want long-term S&P 500 exposure, XUS is worth understanding: same US companies, but an Irish fund structure, 15% instead of 30% US dividend withholding, 0.03% expense ratio, and now accessible through SGX using a Malaysian-regulated brokerage.

Stay safe and stay strong investing!

Regards,
HY
DoitDuit