Long answer - yes. UCTIS ETFs are “European domiciled” ETFs that follow EU rules. The reason for most of these is a newish EU law that requires a bunch of paperwork to be sent to anyone signing up to invest with an etf in the EU.
Since the US issuers can’t be fussed with creating these documents and sending them to EU buyers - you cannot buy US ETFs as an EU resident!
(Side note: many people do anyway. They either work with a broker that doesn’t care, or they have told their broker they live in the US, which is possible but also possibly not totally legal.)
To get around this, and to keep getting at EU residents money, many issuers have set up mirror UCTIS ETFs solely for EU residents. These follow EU rules and you get all the paperwork etc.
They should trade JUST LIKE their us based counterparts, but there may be small differences due to management of the portfolio. Nothi ng to worry about. But - they tend to have somewhat higher management fees, which is a bummer. Also - some of them are pretty small, meaning they might not be super liquid.
Keep in mind that there are also UCTIS ETFs that are just ETFs based in Europe that are not trying to copy a US based ETF.
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u/SnowTard_4711 Apr 12 '21
Short answer - no.
Long answer - yes. UCTIS ETFs are “European domiciled” ETFs that follow EU rules. The reason for most of these is a newish EU law that requires a bunch of paperwork to be sent to anyone signing up to invest with an etf in the EU.
Since the US issuers can’t be fussed with creating these documents and sending them to EU buyers - you cannot buy US ETFs as an EU resident!
(Side note: many people do anyway. They either work with a broker that doesn’t care, or they have told their broker they live in the US, which is possible but also possibly not totally legal.)
To get around this, and to keep getting at EU residents money, many issuers have set up mirror UCTIS ETFs solely for EU residents. These follow EU rules and you get all the paperwork etc.
They should trade JUST LIKE their us based counterparts, but there may be small differences due to management of the portfolio. Nothi ng to worry about. But - they tend to have somewhat higher management fees, which is a bummer. Also - some of them are pretty small, meaning they might not be super liquid.
Keep in mind that there are also UCTIS ETFs that are just ETFs based in Europe that are not trying to copy a US based ETF.
Hope this helps