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Explore the unique features of UCITS ETFs for U.K. residents

What are UCITS ETFs?

Schwab clients who are resident in the United Kingdom are no longer able to purchase U.S.-registered ETFs in order to comply with local UK regulations related to PRIIPS (Packaged Retail Investment & Insurance Products). These rules govern the sale of certain investment products to UK residents. As a result of these rules, UK residents may only hold or liquidate existing U.S. exchange traded product positions. Initial or additional purchases are not permitted.

As an alternative, Schwab offers ETFs that have been authorized as Undertakings for Collective Investment in Transferable Securities (UCITS) under EU and UK rules. These funds meet relevant regulatory requirements, offer investment strategies similar to those of their U.S. counterparts, and are available to UK investors. Many UCITS rules are aimed at reducing the risk by safeguarding the way investment products are managed and controlled. UCITS rules also require an ETF to be liquid, and always accessible. UCITS ETFs are subject to a US$50 foreign transaction fee and must be placed by phone with the help of a Schwab Global Investing Services specialist.

Why consider ETFs?

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    ETFs give you an efficient way to diversify your portfolio without having to select individual stocks or bonds.

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    The UCITS directives allow investors to hold portfolios with multiple share classes and variable income treatment, resulting in both accumulating and distributing ETF options.

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    Certain exposures are available in the UCITS market which are not available in the U.S., such as European sectors and country government bond funds.

How do I get started?

ETFs can be traded with the help of a Schwab Global Investing specialist and are subject to a US$50 transaction fee.

For more information about UCITS ETFs, please contact us.

Start investing in the U.S. markets today.

Have more questions? We're here to help.

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