If you are a US citizen living in Canada you probably know (or should know) that you shouldn't invest in Canadian ETFs (or any non US domiciled ETFs) to avoid PFIC penalties. If you're not aware of this, definitely worth looking into to avoid getting a scary tax letter and penalties from IRS! This can be very annoying for us US citizens who want to invest in Canadain ETFs. What I recently learned, however, is that the exception to this rule is within your RRSP. You CAN invest in Canadian ETFs within your RRSP without PFIC penalties! Do your own research and consult with a US accountant, but this can be a game changer if it applies to your situation.
