While U.S. mutual funds may no longer be available for Americans abroad, Exchange Traded Funds (ETFs) are generally not restricted for sale to non-U.S. residents (with the exception of EU residents, discussed below).

Does it matter where an ETF is domiciled?

Domicile matters Typically, ETFs bought by UK-based investors are listed on the London Stock Exchange but domiciled in either Ireland or Luxembourg. The first thing investors should check when selecting an ETF is that the fund has UK tax-reporting and/or distributing status.

Is there withholding tax on US ETF?

U.S. Bond Exposure All Canadian-listed ETFs seeking exposure to U.S. bonds are generally either exempt from the U.S. withholding tax, on qualified interest income, regardless of whether or not the ETF is held in a taxable or non-taxable investment account.

What are US-domiciled ETFs?

US-domiciled ETFs are bought and sold in US dollars. Therefore your pounds must be converted into dollars every time you trade. Most brokers charge a hefty FX rate that’s considerably higher than the real interbank exchange rate.

How do you know if an ETF is domiciled?

To help you identify the right domiciliary for your ETF, check the ticker symbol. For example, Vanguard S&P 500 ETF’s ticker is VOO in its US-domiciled version, but the Dublin-domiciled Vanguard S&P 500 UCITS ETF’ ticker is VUSA.

Why can’t I trade US ETFs?

Unless you’re able to prove you’re a ‘sophisticated investor’ then practically all platforms and brokers will refuse to sell you ETFs based in the US (also known as US-domiciled or US-registered ETFs) because these products do not conform to European UCITS regulation.

Why can’t I buy US ETFs?

Should I put savings into ETF?

Using ETFs for Savings To yield better results, you have to take on more risk, but some ETFs offer much lower risk than individual stocks. For investors with a longer-term time horizon, these ETFs can build long-term savings better than a savings account or CD.

How do I know if an ETF is domicile?

Why can’t I trade ETFs on Saxo?

If you are a US national you will not be able to trade US instruments. Due to reporting requirements Saxo Bank does not allow US nationals to trade stocks (incl. stock options which settle physically), CFDs, bonds and ETFs issued by US incorporated entities.