UK Equivalents of US Funds are hugely popular in the UK and European markets, and many of the big US ETF providers have established themselves in both countries. Inevitably, products that have proven success in the States will make their way to Europe (and vice versa). This has led to a core of efficient ETFs that allow investors to construct a fully diversified global investment portfolio.

In addition to the broad pool of low cost, tax-efficient funds, investors can also add in a mix of individual stocks and bonds, and even alternative investments such as real estate, private equity or commodities. With this, investors can create a well-diversified portfolio with the goal of protecting against rising inflation and achieving higher long-term returns.

UK Equivalents of US Funds: Best Investment Alternatives

One challenge when investing abroad is the complexities of navigating local rules, regulations and tax regimes. This can be exacerbated for Americans living or expecting to live in the UK for an extended period of time.

The US and UK have different rules around the taxation of foreign-listed investment funds, including ETFs. For example, the UCITS format of an EU-listed ETF is typically considered a non-UK fund for purposes of the US Foreign Account Tax Compliance Act (FATCA). This can cause significant withholding taxes on dividend payments by US companies to EU investors. The good news is that a UK Investor can avoid these withholding taxes by using an Irish domiciled UCITS ETF offering exposure to US equities.

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