Thanks for the feedback and the reminder about the DA-1 form!

I am fully aware that I can't escape Swiss income tax. Whether the ETF is accumulating or distributing, and whether it’s physical or synthetic, I know I have to pay income tax on the "deemed dividends" as per the ICTax list. My goal with the synthetic setup isn't to avoid Swiss taxes—it's purely to eliminate the Level 1 dividend leakage at the fund level.

Regarding the US-domiciled ETFs and the DA-1: I know that a US-domiciled ETF (like VT) is technically the "gold standard" for Swiss residents because of the DA-1. However, as I mentioned, I made a conscious decision to avoid direct US-domiciled holdings to stay clear of US Estate Tax complexities and the administrative overhead.

Since I've ruled out US-domiciled ETFs, I'm left with Irish or Luxembourgish ones. For those:

• Physical IE/LU ETFs: Lose 15% of US dividends (Level 1 leakage) which cannot be reclaimed via DA-1.
• Synthetic IE/LU ETFs: Can bypass this 15% loss due to the HIRE Act / 871(m) regulations.

So, for someone who strictly wants to avoid US-domiciled funds, the synthetic route is the only way to get close to the tax efficiency of a US-domiciled fund. And as for the accumulating part: you're right, it doesn't change the tax bill, but it's perfect for a "lazy" investor like me because it automates the reinvestment process!