US domiciled ETFs that are UK HMRC reporting funds

From Bogleheads

US domiciled ETFs that are UK HMRC reporting funds lists a selection of US domiciled exchange-traded funds (ETFs) that meet UK HMRC reporting fund[1] requirements.

US citizens and US permanent residents (green card holders) living in the UK can hold the funds listed below without running into problems with the US's harsh Passive foreign investment company (PFIC) tax regime, and also without running into higher UK tax because they hold HMRC non-reporting funds. The information in this article is specific to US citizens and US permanent residents who are UK residents.

Introduction

If you are a US citizen or US permanent resident (green card holder) living in the UK, then because of the way the US's citizenship-based taxation and harsh Passive foreign investment company (PFIC) tax regime intersect, you cannot use the normal range of UCITS funds and ETFs offered to other UK and EU residents. For you, holding US domiciled funds or ETFs is one of very few viable routes to index investing.

However, the UK also has rules that discourage some "offshore" fund holdings. You would pay tax on gains in a non-UCITS fund or ETF that lacks HMRC reporting status[1] at higher income rates, instead of lower and more beneficial capital gains rates.

Many US domiciled funds and ETFs will not have HMRC reporting status. However, some US domiciled ETFs - including most Vanguard and Dimensional ETFs - are HMRC reporting funds. This means that you can invest through these ETFs without running into either country's unpleasant tax regime for "offshore" funds.

US domiciled ETFs with HMRC reporting status

The following tables[note 1] show a selection of US domiciled ETFs that you can safely use in taxable accounts. These are also safe to use in a UK Individual Savings Account (ISA), although for you the ISA wrapper only provides protection from UK taxes, not from any US taxes. The US will tax your ISA gains annually as if it is a normal taxable account.

The tables show data from HMRC's approved offshore reporting funds list, as of 14 May 2024. This list shows funds by CUSIP. The mapping from CUSIP to fund exchange ticker uses data from OpenFIGI, as of 14 May 2024.

If you are going to rely on the information in the tables, please first check these sources to ensure that the table data remains accurate. These tables are not an exhaustive list of all US domiciled ETFs that are HMRC reporting funds.

Equities: global/non-US

Ticker Fund Family Fund Name CUSIP HMRC Reporting Since
AVEM American Century Avantis Emerging Markets Equity ETF 025072604 01 Sep 2022
AVDE American Century Avantis International Equity ETF 025072703 01 Sep 2022
AVSE American Century Avantis Responsible Emerging Markets Equity ETF 025072315 01 Sep 2022
AVSD American Century Avantis Responsible International Equity ETF 025072299 01 Sep 2022
DFAE Dimensional Emerging Core Equity Market ETF 25434V302 01 Dec 2020
DFEM Dimensional Emerging Markets Core Equity 2 ETF 25434V732 26 Apr 2022
DEHP Dimensional Emerging Markets High Profitability ETF 25434V757 26 Apr 2022
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF 25434V682 01 Nov 2022
DFEV Dimensional Emerging Markets Value ETF 25434V740 26 Apr 2022
DFIC Dimensional International Core Equity 2 ETF 25434V799 23 Mar 2022
DFAI Dimensional International Core Equity Market ETF 25434V203 17 Nov 2020
DIHP Dimensional International High Profitability ETF 25434V765 23 Mar 2022
DFIS Dimensional International Small Cap ETF 25434V773 23 Mar 2022
DISV Dimensional International Small Cap Value ETF 25434V781 23 Mar 2022
DFSI Dimensional International Sustainability Core 1 ETF 25434V690 01 Nov 2022
DFIV Dimensional International Value ETF 25434V807 01 Nov 2020
DFAW Dimensional World Equity ETF 25434V617 26 Sep 2023
DFAX Dimensional World ex U.S. Core Equity 2 ETF 25434V880 01 Nov 2020
IEFA iShares Core MSCI EAFE ETF 46432F842 01 Aug 2021
IEMG iShares CORE MSCI Emerging Markets ETF 46434G103 01 Sep 2023
EMXC iShares MSCI Emerging Markets ex China ETF 46434G764 01 Sep 2023
EWU iShares MSCI United Kingdom ETF 46435G334 01 Sep 2023
VWO Vanguard Emerging Markets Stock Index Fund 922042858 01 Nov 2010
VEU Vanguard FTSE All-World ex-US Index Fund 922042775 01 Nov 2010
VSS Vanguard FTSE All-World ex-US Small-Cap Index Fund 922042718 01 Nov 2010
VEA Vanguard FTSE Developed Markets ETF 921943858 01 Jan 2011
VGK Vanguard FTSE Europe Fund 922042874 01 Nov 2010
VPL Vanguard FTSE Pacific Fund 922042866 01 Nov 2010
VXUS Vanguard Total International Stock Index Fund 921909768 01 Nov 2010
VT Vanguard Total World Stock Index Fund 922042742 01 Nov 2010

Equities: United States

Ticker Fund Family Fund Name CUSIP HMRC Reporting Since
AVSU American Century Avantis Responsible U.S. Equity ETF 025072281 01 Sep 2022
AVUS American Century Avantis US Equity ETF 025072885 01 Sep 2022
AVUV American Century Avantis US Small Cap Value ETF 025072877 01 Sep 2022
DFAC Dimensional U.S. Core Equity 2 ETF 25434V708 01 Nov 2020
DFAU Dimensional U.S. Core Equity Market ETF 25434V104 17 Nov 2020
DFUS Dimensional U.S. Equity ETF 25434V401 01 Nov 2020
DFAS Dimensional U.S. Small Cap ETF 25434V500 01 Nov 2020
DFAT Dimensional U.S. Targeted Value ETF 25434V609 01 Nov 2020
DCOR Dimensional US Core Equity 1 ETF 25434V625 12 Sep 2023
DUHP Dimensional US High Profitability ETF 25434V831 23 Feb 2022
DFLV Dimensional US Large Cap Value ETF 25434V666 06 Dec 2022
DFVX Dimensional US Large Cap Vector ETF 25434V641 01 Nov 2023
DFUV Dimensional US Marketwide Value ETF 25434V724 01 Nov 2021
DFSV Dimensional US Small Cap Value ETF 25434V815 23 Feb 2022
DFSU Dimensional US Sustainability Core 1 ETF 25434V716 01 Nov 2022
IVV iShares Core S&P 500 ETF 464287200 01 Apr 2022
IJR iShares Core S&P Small-Cap ETF 464287804 01 Apr 2022
IWF iShares Russell 1000 Growth ETF 464287614 01 Apr 2022
IWV iShares Russell 3000 ETF 464287689 01 Apr 2022
IWP iShares Russell Mid-Cap Growth ETF 464287481 01 Apr 2022
IJK iShares S&P Mid-Cap 400 Growth ETF 464287606 01 Apr 2022
VOO Vanguard 500 Index Fund 922908363 01 Jan 2011
VIG Vanguard Dividend Appreciation Index Fund 921908844 01 Feb 2011
VXF Vanguard Extended Market Index Fund 922908652 01 Jan 2011
VUG Vanguard Growth Index Fund 922908736 01 Jan 2011
VYM Vanguard High Dividend Yield Index Fund 921946406 01 Nov 2010
VV Vanguard Large-Cap Index Fund 922908637 01 Jan 2011
MGK Vanguard Mega Cap Growth Index Fund 921910816 01 Sep 2010
MGC Vanguard Mega Cap Index Fund 921910873 01 Sep 2010
MGV Vanguard Mega Cap Value Index Fund 921910840 01 Sep 2010
VOT Vanguard Mid-Cap Growth Index Fund 922908538 01 Jan 2011
VO Vanguard Mid-Cap Index Fund 922908629 01 Jan 2011
VOE Vanguard Mid-Cap Value Index Fund 922908512 01 Jan 2011
VONG Vanguard Russell 1000 Growth Index Fund 92206C680 01 Sep 2010
VONE Vanguard Russell 1000 Index Fund 92206C730 01 Sep 2010
VONV Vanguard Russell 1000 Value Index Fund 92206C714 01 Sep 2010
VTWG Vanguard Russell 2000 Growth Index Fund 92206C623 01 Sep 2010
VTWO Vanguard Russell 2000 Index Fund 92206C664 01 Sep 2010
VTWV Vanguard Russell 2000 Value Index Fund 92206C649 01 Sep 2010
VTHR Vanguard Russell 3000 Index Fund 92206C599 01 Sep 2010
VOOG Vanguard S&P 500 Growth Index Fund 921932505 01 Sep 2010
VOOV Vanguard S&P 500 Value Index Fund 921932703 01 Sep 2010
IVOG Vanguard S&P Mid-Cap 400 Growth Index Fund 921932869 01 Sep 2010
IVOO Vanguard S&P Mid-Cap 400 Index Fund 921932885 01 Sep 2010
IVOV Vanguard S&P Mid-Cap 400 Value Index Fund 921932844 01 Sep 2010
VIOG Vanguard S&P Small-Cap 600 Growth Index Fund 921932794 01 Sep 2010
VIOO Vanguard S&P Small-Cap 600 Index Fund 921932828 01 Sep 2010
VIOV Vanguard S&P Small-Cap 600 Value Index Fund 921932778 01 Sep 2010
VBK Vanguard Small-Cap Growth Index Fund 922908595 01 Jan 2011
VB Vanguard Small-Cap Index Fund 922908751 01 Jan 2011
VBR Vanguard Small-Cap Value Index Fund 922908611 01 Jan 2011
VTI Vanguard Total Stock Market Index Fund 922908769 01 Jan 2011
VTV Vanguard Value Index Fund 922908744 01 Jan 2011

Fixed income: global/non-US

Ticker Fund Family Fund Name CUSIP HMRC Reporting Since
AVSF American Century Avantis Short-Term Fixed Income ETF 025072687 01 Sep 2023
DFCF Dimensional Core Fixed Income ETF 25434V872 15 Nov 2021
DFGP Dimensional Global Core Plus Fixed Income ETF 25434V583 07 Nov 2023
DGCB Dimensional Global Credit ETF 25434V567 07 Nov 2023
DFSB Dimensional Global Sustainability Fixed Income ETF 25434V674 15 Nov 2022
DFSD Dimensional Short-Duration Fixed Income ETF 25434V864 15 Nov 2021
PCY Invesco Emerging Markets Sovereign Debt ETF 46138E784 01 Nov 2022
LEMB iShares J.P. Morgan EM Local Currency Bond ETF 464286517 01 Nov 2020
IHY VanEck International High Yield Bond ETF 92189F445 02 Apr 2012
EMLC VanEck J.P. Morgan EM Local Currency Bond ETF 92189H300 01 May 2011
VWOB Vanguard Emerging Markets Government Bond ETF Index Fund 921946885 01 Nov 2013
BNDX Vanguard Total International Bond ETF Index Fund 92203J407 01 Nov 2013

Fixed income: United States

Ticker Fund Family Fund Name CUSIP HMRC Reporting Since
XONE BondBloxx Bloomberg One Year Target Duration US Treasury ETF 09789C861 13 Sep 2022
XHLF BondBloxx Bloomberg Six Month Target Duration US Treasury ETF 09789C788 13 Sep 2022
XTEN BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF 09789C812 01 Nov 2022
DFCA Dimensional California Municipal Bond ETF 25434V633 26 Jun 2023
DFIP Dimensional Inflation-Proctected Securities ETF 25434V856 15 Nov 2021
DFNM Dimensional National Municipal Bond ETF 25434V849 15 Nov 2021
DUSB Dimensional Ultrashort Fixed Income ETF 25434V591 26 Sep 2023
BKLN Invesco Senior Loan ETF 46138G508 01 Sep 2022
BAB Invesco Taxable Municipal Bond ETF 46138G805 01 Sep 2022
STIP iShares 0-5 Year TIPS Bond ETF 46429B747 01 Nov 2020
IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF - USD 464288646 01 Mar 2024
USHY iShares Broad USD High Yield Corporate Bond ETF 46435U853 01 Nov 2020
AGG iShares Core U.S. Aggregate Bond ETF 464287226 01 Mar 2021
SHV iShares Short Treasury Bond ETF - USD 464288679 01 Mar 2023
SUB iShares Short-Term National Muni Bond ETF - USD 464288158 01 Mar 2023
HYD VanEck High-Yield Municipal Index ETF 92189H409 01 May 2019
EDV Vanguard Extended Duration Treasury Index Fund 921910709 01 Sep 2010
BIV Vanguard Intermediate-Term Bond Index Fund 921937819 01 Jan 2011
VCIT Vanguard Intermediate-Term Corporate Bond Index Fund 92206C870 01 Sep 2010
VGIT Vanguard Intermediate-Term Treasury Index Fund 92206C706 01 Sep 2010
BLV Vanguard Long-Term Bond Index Fund 921937793 01 Jan 2011
VCLT Vanguard Long-Term Corporate Bond Index Fund 92206C813 01 Sep 2010
VGLT Vanguard Long-Term Treasury Index Fund 92206C847 01 Sep 2010
VMBS Vanguard Mortgage-Backed Securities Index Fund 92206C771 01 Sep 2010
BSV Vanguard Short-Term Bond Index Fund 921937827 01 Jan 2011
VCSH Vanguard Short-Term Corporate Bond Index Fund 92206C409 01 Sep 2010
VGSH Vanguard Short-Term Treasury Index Fund 92206C102 01 Sep 2010
BND Vanguard Total Bond Market Index Fund 921937835 01 Jan 2011

Gold

Ticker Fund Family Fund Name CUSIP HMRC Reporting Since
SGOL abrdn Physical Gold Shares ETF 00326A104 01 Jan 2016
GLD SPDR Gold Shares 78463V107 01 Oct 2011

Real estate

Ticker Fund Family Fund Name CUSIP HMRC Reporting Since
DFGR Dimensional Global Real Estate ETF 25434V658 06 Dec 2022
DFAR Dimensional US Real Estate ETF 25434V823 23 Feb 2022
VNQI Vanguard Global ex-U.S. Real Estate Index Fund 922042676 01 Nov 2010
VNQ Vanguard REIT Index Fund 922908553 01 Feb 2011

Problems caused by FATCA and PRIIPs

After FATCA in 2010, many UK financial institutions and brokerages started to refuse accounts for US citizens and green card holders, even those living in the UK.[2] At the same time, some US brokerages began shutting off access for US citizens and green card holders living outside the US.[3]

In 2018, the European PRIIPs (Packaged Retail and Insurance-based Investment Products) regulation became effective. As a result it is now difficult or even impossible for EU residents to purchase US domiciled funds directly (although indirect purchases potentially remain possible[note 2]). Shares purchased before the regulation came into effect can be kept and sold, but EU residents can generally no longer buy new shares of these funds or ETFs. The UK left the EU in January 2020, but created its own 'UK PRIIPs' regime that is fully aligned with the EU PRIIPs, so PRIIPs restrictions continue to apply in the UK.[4]

If you are a US citizen or green card holder living in the UK, the way these restrictions combine severely limits your options for holding US domiciled ETFs with HMRC reporting fund status. You can use US brokerage accounts to access US domiciled ETFs, but getting access to a suitable account may be difficult; for example, you may have to open it using a US address.

Effects of ETFs gaining or losing HMRC reporting status

You need to pay close attention to the "HMRC reporting since" column in the table above. HMRC has different tax rules where you hold an ETF or other "offshore" fund outside of any period in which it is an HMRC reporting fund.[5][6]

PFICs in UK pensions

Under regulations issued by the IRS in 2016, there is an exemption to PFIC reporting for any funds you hold in UK pensions.[7] Here, the US/UK tax treaty protects you from PFIC rules, so that you can hold any funds you like in a UK pension, without being affected by these rules.

Non-reporting funds in US pensions

Symmetrically with the above, the UK's HMRC reporting funds regime only applies to funds you hold outside of UK tax-sheltered accounts. Holding non-reporting funds in a US pension, including Roth accounts, causes no tax problems. (Also, no problems in a UK pension or ISA, to the extent that PRIIPs does not prevent you from using them at all inside UK based accounts.)

Notes

  1. These tables are built using a script to extract data from HMRC's reporting funds spreadsheet. You can find the details for this in the discussion page associated with this page.
  2. Forum member "finrod_2002" provides details of how an investor might use options trades to work around PRIIPs restrictions, in Bogleheads forum post: "Re: European, dutch investor here: Is investing in VTI and VXUS still a good choice?". February 17, 2019. Viewed October 28, 2019.

See also

References

  1. 1.0 1.1 "Offshore funds: distributing and reporting funds". HMRC. Retrieved October 17, 2019.
  2. "Why expat Americans are giving up their passports". BBC. Retrieved July 18, 2019.
  3. "Why US Brokerage Accounts of American Expats are Being Closed". Creative Planning. Archived from the original on August 20, 2022. Retrieved June 11, 2023.
  4. "Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit)". GOV.UK. Retrieved February 1, 2020. Regulations 2019: explanatory information
  5. "IFM13360 - Offshore Funds: income and distributions from non-reporting funds". HMRC. Retrieved March 1, 2023. Conversion of a non-reporting fund to a reporting fund - Regulation 48.
  6. "IFM13340 - Offshore Funds: reporting funds that become non-reporting funds". HMRC. Retrieved March 1, 2023. Deemed disposal election - Regulation 100.
  7. "United States – IRS Issues Final PFIC Regulations" (PDF). KPMG Global. Retrieved October 3, 2023.

External links