UK ETPs for an American?

[LightStache]

I'm planning an awesome FIRE adventure in 2027 and anticipate a bill around £60K. I'm a US resident with all of my assets in USD. Partly because of the exchange rate and partly for emotional reasons, I opened up an IKBR account, deposited $50K, and converted it to £41.5K.

My plan was to buy equity and bond ETFs, but when I go to the quote screens for several ETFs, it says they're not available to U.S. investors. It does look like I can trade individual stocks (and bonds I assume), so I could create a portfolio of individual securities, but that would be a PITA.

Anyone know of a workaround to buy index products in GBP? I know I could get GBP exposure through USD products, but I want to have this pot-of-pounds for my 2027 bill.

[PDXTabs]

Anyone know of a workaround to buy index products in GBP? I know I could get GBP exposure through USD products, but I want to have this pot-of-pounds for my 2027 bill.

The workaround is a mental hack where you just ignore what currency the product is priced in and pick a US domiciled fund that meets your needs. If one fund is domiciled in Ireland or the UK and priced in Euros or Pounds but holds identical assets to a US domiciled fund then they are all holding identical assets and just happen to be priced in different currencies.

[LightStache]

Anyone know of a workaround to buy index products in GBP? I know I could get GBP exposure through USD products, but I want to have this pot-of-pounds for my 2027 bill.

The workaround is a mental hack where you just ignore what currency the product is priced in and pick a US domiciled fund that meets your needs. If one fund is domiciled in Ireland or the UK and priced in Euros or Pounds but holds identical assets to a US domiciled fund then they are all holding identical assets and just happen to be priced in different currencies.

That's no fun. ;)

[PDXTabs]

Anyone know of a workaround to buy index products in GBP? I know I could get GBP exposure through USD products, but I want to have this pot-of-pounds for my 2027 bill.

The workaround is a mental hack where you just ignore what currency the product is priced in and pick a US domiciled fund that meets your needs. If one fund is domiciled in Ireland or the UK and priced in Euros or Pounds but holds identical assets to a US domiciled fund then they are all holding identical assets and just happen to be priced in different currencies.

That's no fun. ;)

Sure it is! With this one easy trick you can avoid the tax consequences of being a US resident with a PFIC!!!

[reeshau]

Sure it is! With this one easy trick you can avoid the tax consequences of being a US resident with a PFIC!!!

+1

[daverobev]

OP do not. Just do not. You're in for a world of pain.

Are you planning on moving to the UK at some point? If so make sure you buy the very few US-dom ETFs that are registered as UK reporting. AFAIR the bigger Vanguard ones are - VT, VWRL, etc. The list is https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds

[LightStache]

Ok peeps, thanks for setting me straight! I'll abandon the GPBs and just keep those funds in US securities.

@daverobev no plan to be a UK resident at any point -- my plan right now is to only be there for 2-3 months in '27.