Do tax efficient non-US fixed income funds exist?

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nyclon
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Do tax efficient non-US fixed income funds exist?

Post by nyclon »

For higher tax brackets tax exempt bonds exist in the US due to legislation. Are non-US bonds off-limits for higher tax brackets in taxable accounts as a result of no incentives existing for non-US fixed income? Or is there an option to add non-US fixed income exposure in a tax efficient manner into taxable accounts?

VGCAX (Vanguard Global Credit Bond Fund) looks reasonable but is not tax efficient.

This is a follow up question to a post regarding creating a tax-efficient global version of wellington - all I could find was munis as the bond component for a hypothetical 8 or 9-figure portfolio. viewtopic.php?p=6473465
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David Jay
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Re: Do tax efficient non-US fixed income funds exist?

Post by David Jay »

The IRS requires that all interest be paid out as dividends and that dividend interest be taxed as regular income. Very little way around that for a US domiciled fund.
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