RetireJapan

Posted: **Thu Sep 02, 2021 4:48 pm**

Hi All
I've PFIC allergy & hold only cash in iDeco as Dual-Citizen(US/JP) living in EU.
Don't like inflation either so have been researching for PFIC proof investment choices but so far only found below. In 2021, are below still solid PFIC proof choices and are there any others?

Bogleheads - "As of January 22, 2018, the only US-domiciled ETF trading on the Tokyo Stock Exchange is SPY (1557). This appears to be a direct cross-listing rather than a Japan Depositary Receipts (JDR)."
https://www.bogleheads.org/wiki/Investi ... k_Exchange

bpp stated on 2017 in RetireJapan forum- "Yes, those should be safe from PFIC treatment" for the following.
1581 iShares MSCI Kokusai ETF TOK 0.25%
1587 iShares S&P 100 ETF OEF 0.20%
1557 S&P500 Index ETF SPY 0.09%

Many thanks in advance

Peace

Posted: **Fri Sep 03, 2021 12:36 am**

Peace wrote: ↑Thu Sep 02, 2021 4:48 pm Hi All
I've PFIC allergy & hold only cash in iDeco as Dual-Citizen(US/JP) living in EU.
Don't like inflation either so have been researching for PFIC proof investment choices but so far only found below. In 2021, are below still solid PFIC proof choices and are there any others?

Bogleheads - "As of January 22, 2018, the only US-domiciled ETF trading on the Tokyo Stock Exchange is SPY (1557). This appears to be a direct cross-listing rather than a Japan Depositary Receipts (JDR)."
https://www.bogleheads.org/wiki/Investi ... k_Exchange

bpp stated on 2017 in RetireJapan forum- "Yes, those should be safe from PFIC treatment" for the following.
1581 iShares MSCI Kokusai ETF TOK 0.25%
1587 iShares S&P 100 ETF OEF 0.20%
1557 S&P500 Index ETF SPY 0.09%

Many thanks in advance

Peace

For reference, you cannot invest your iDeco in those listed funds. Check your provider, there is usually a small list of select funds, all mutual funds.

As far as the listed funds go, you need to check the prospectuses carefully. No fund needs to state is is a PFIC, and the IRS can choose to recognize them as such at their leisure.

For general investing IBKR Interactive Brokers is a better bet for Americans in Japan. Avoid the PFIC trap and invest in American domiciled ETFs.

Posted: **Mon Sep 06, 2021 9:15 pm**

Thanks Established.
I'm with SBI, and indeed they didn't seem to show it on their list of available iDeco investments. How disappointing.

Current SBI iDeco offerings in case anyone's interested.
https://site0.sbisec.co.jp/marble/insur ... ksearch.do

>As far as the listed funds go, you need to check the prospectuses carefully.
Not sure if I have this patience/time, but I'm also guessing SBI customer support may not be able to validate if any are non-PFIC (I hope I'm wrong, but I've not heard firm's knowledge improving in this area).

So frustrating that I need to hold it all in CASH for long time.
Sad, sad, sad.

RetireJapan

PFIC proof iDeco investments - Any updates for 2021?

PFIC proof iDeco investments - Any updates for 2021?

Re: PFIC proof iDeco investments - Any updates for 2021?

Re: PFIC proof iDeco investments - Any updates for 2021?