Negatives to having US stocks in Stocks and shares ISA?

25th Jan '24 by N0vice1Nvest0r

2 comments 277 reads

What are the unappreciated negatives that occur with holding US stocks in a UK stocks and shares ISA? I'm building my ISA with mainly UK based ETFs and some companies. However due to the extra information available about Govt official trades and insider buys, I'm finding myself tempted to add certain US stocks.

Are there any hidden or unrealised US taxes taken whilst holding a US stock in a UK stocks and shares ISA? Obviously you have to take into account a FX fee. But what else should I be looking out for?? Thanks in advance!

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Indie

25th Jan '24

Hi N0vice1Nvest0r, a good start would be to read Megan’s article on debunking myths about investing in US stocks. There are other articles in the International section of blogs under Discuss that you might find useful. I’m also considering US stocks.
Hope it all goes well for you.

Rusty2

Forex fees and 15% withholding tax on dividends are the main 2.

Dividends are generally lower, some large caps, don't pay any.

On the plus side, spreads are generally much narrower, no stamp duty and much more liquid markets, so buying and selling is much easier.

Negatives to having US stocks in Stocks and shares ISA?

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N0vice1Nvest0r

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