Foreign Investors Dodge 30% US Dividend Tax via $40B Quarterly Shuffle Between Vanguard, BlackRock S&P 500 ETFs. This maneuver involves pulling over $40 billion quarterly from one S&P 500 ETF and depositing it into a near-identical product from the other provider, then reversing the trade a few days later. The strategy exploits differing dividend distribution dates, allowing investors to convert taxable dividend income into non-taxable price appreciation. This practice saved foreign investors an estimated $147 million in US taxes last year. A top US Treasury Department official recently stated that this practice is not currently under scrutiny.