There are also Closed End Funds in the USA? Barrons used to publish a list. They tend to have high Expense Ratios but there are some very old ones (one from the 1920s) that are probably not bad large cap funds?Probably not, provided that they do not invest in any of the same funds or ETFs as their Norwegian non-US citizen neighbours. That leaves US domiciled funds or ETFs, likely only available through a US brokerage, or individual stocks.Even reading the wiki at this point for tax purposes it's not clear if the US tax rules are so painful that the taxes on any dividend and short-term/long-term gain sales in a brokerage account with say, IB, would negate trying to keep up with or beat inflation in saved assets with the 7-10% annual value gains in the market.
In a pinch, expats sometimes use BRKB. It is 'fund-like', but it is not a fund or ETF so you can buy it through a non-US broker without interference from PRIIPs regulations, and because it is not a fund and not non-US domiciled, it escapes the US's spiteful PFIC tax rules. Of course, it is nowhere near as diversified as an index fund, but it can be a useful port of call where the US tax rules make funds and ETFs effectively not an option.
I don't know if these would work ie buy them through someone like IB as "US shares".
US taxes would be payable. Norwegian taxes would be payable. But there would be more diversification.
With a small portfolio of US shares its very difficult to track the market and what I say below isn't particularly helpful to this situation.
Sidebar on stock selection for a "self index" type of situation
I would say own Microsoft and Apple, but that's not even a bet on tech, it is a bet on the market position and intelligent moves of 2 particular bits of the tech ecosystem, at a time when AI risks disrupting everything. And even if it does not, these 2 companies cannot repeat past growth.
J&J on the healthcare side. Probably you can cover consumer goods with Nestle + P&G? Taking a look at the Fundsmith Global Equity portfolios in the UK (Terry Smith was a leading investment analyst who is now a hugely successful investor - recently not done as well) -- these are a collection of high return on capital global large cap stocks with apparently stable business franchises.
https://www.fundsmith.co.uk/factsheet/ would give you an idea of the sorts of companies.
Statistics: Posted by Valuethinker — Wed Jan 03, 2024 3:26 am — Replies 6 — Views 430