4 ms·
im not an economist, I have no valid opinion on if this is right or not. BUT, I actually started looking at moving more of the stable bond/treasury holding bit
by jdc0589 2y ago
im not an economist, I have no valid opinion on if this is right or not.
BUT, I actually started looking at moving more of the stable bond/treasury holding bit of my portfolio to foreign funds recently (in addition to moving more of the stock/mutual fund balance to international stuff).
If I'm thinking about that as an individual private citizen of the US, I can't imagine what actual professionals are thinking about.
- greenavocado 2y agoMost foreign mutual funds and ETFs are classified as Passive Foreign Investment Companies (PFICs). PFIC investments face complex and often punitive tax treatment. Gains may be taxed at the highest marginal ordinary income tax rate (not the lower capital gains rate). Additional interest charges may apply. Annual filing requirements via Form 8621 for each PFIC
- rsynnott 2y agoThey likely mean US-domiciled ETFs which hold foreign shares. The big providers (BlackRock, Vanguard and friends) typically have copies of their big funds domiciled in, at least, the US and Ireland (or sometimes Luxembourg); the European versions are UCITS-compliant, and often offered in an accumulating variant (not tax efficient in the US, but it is in some European counties), but otherwise basically the same thing. For instance, here are two BlackRock ETFs tracking the MSCI emerging markets index, one US-domiciled and one Ireland-domiciled: https://www.ishares.com/us/products/239637/ishares-msci-emerging-markets-etf https://www.ishares.com/us/products/239637/ishares-msci-emer... , https://www.ishares.com/uk/individual/en/products/251857/ishares-msci-emerging-markets-ucits-etf-inc-fund https://www.ishares.com/uk/individual/en/products/251857/ish... They are for practical purposes the same thing.