UK Equivalents of US Funds Guide
UK Equivalents of US Funds Guide
UK Equivalents of US Funds Guide
While the Roth IRA facilitates tax-efficient retirement savings in the United States, investors looking for similar solutions in the UK can find robust alternatives via the Stocks and Shares Individual Savings Account (ISA) or through UK mutual funds. But despite the popularity of these vehicles, some investment managers say profit margins are eroding due to a variety of factors, including increased back office costs and hefty fees charged by many US counterparts.
Fortunately, a number of UK Equivalents of US Funds Guide such as Hargreaves Lansdown and AJ Bell, offer funds that mimic the investment objectives of popular US funds while adhering to local regulatory frameworks. These funds are known as open-ended investment companies, or OEICs. They allow a maximum of one million shareholders to buy or sell shares at any time, and can create new shares or redeem existing ones as required by investors.
Top Alternatives to Binance in the UK Market
UK equivalents to US total stock market index funds provide broad exposure to domestic and international equities, a core element of diversified portfolios. For example, a fund such as the Vanguard Total Stock Market Index Fund Admiral Shares (VTI) tracks the CRSP US total market index and includes Large Caps, Mid and Small Caps. Its closest UCITS UK equivalent is the iShares Edge MSCI USA Value Factor UCITS ETF (VTVL & IUVL), which also tracks the same CRSP US value factor index.
Investors seeking a UK alternative to US technology funds can consider the iShares FTSE 250 Technology UCITS ETF (IGLT). Or for global equity exposure akin to the Vanguard Total International Stock Index Fund Admiral Shares (VXUS), they could consider the HSBC MSCI World UCITS ETF Accumulation (HMWO). For those with interest in US bond markets, there are a number of UK equivalents that hold long-term investments-grade corporate bonds. These funds — typically with UK HMRC reporting status — avoid the withholding tax and other punitive UK taxes that apply to some offshore funds.