Investing in US compliant securities and funds is almost always going to be the better option over exotic alternatives, not to mention the lower costs. US expats will want to carefully weigh up their options to see if they are making the right choice. What are PFICs and should I invest in them? Broadly and simply speaking, a Passive Foreign Investment Company (PFIC) is a mutual fund registered outside of the US (1). It can contain mutual or hedge funds, foreign ETFs as well a