Forums General Discussion EU citizens no longer allowed to buy US ETFs

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  • Alex MistreanuAlex M Newbie
    Post count: 2

    Hi everyone,

    I live in EU, have a brokerage account in the US, however since 2018 I’m no longer allowed to buy US ETFs.
    My main interest was in Vanguard’s VOO (S&P500 index). The good part is that I’m still able to purchase any
    US stocks since the restriction are on ETF and mutual funds.

    My question is, what would be in your opinion 5-10 stocks that would be close to S&P500 return rate, volatility and diversification?

    Thanks!

    Veeral ShahVeeral Shah Aspiring VIP Member
    Post count: 75

    Hi Alex,

    In my opinion, I don’t think you can just buy 5 to 10 stocks to mimic S&P 500. I was wondering, is there any reason that is stopping you to buy S&P 500 ETF / Index fund in a broker account within EU as you have mentioned that you live in EU?

    Cheers

    Arjan MArjan M Newbie
    Post count: 5

    It’s not hard at all to find EU-approved S&P500 funds, they even have similarly attractive expense ratios of 0,05-0,07%. Simply google UCITS S&P500 and you’ll find many ETF aggregator websites to help you on your way. I personally hold VUSA in Amsterdam, but there are various variations and listings within Vanguard and other providers.

    1 user liked this post.
    Stig BrodersenStig Brodersen Administrator
    Post count: 224

    Hi Arjan,

    Thank you for your response.

    Which ETFs focusing on value factors do you find interesting that can be traded in Europe?

    Like Alex, I can’t trade US ETFs as I live in Europe. So far I always invested in individual stocks, but I’m looking more into ETFs lately.

    -Stig

    Price is what you pay. Value is what you get. - Warren Buffett

    Arjan MArjan M Newbie
    Post count: 5

    {Which ETFs focusing on value factors do you find interesting that can be traded in Europe?}

    To start of I want to say that I’m woefully underqualified to answer this question, but my take is that I shy away from value ETFs because I do not like buying value against momentum and I don’t know of any passively managed UCITS funds that combine value and momentum. Actively managed funds that incorporate such strategies have high expense ratios, and I don’t feel comfortable paying a high TER unless I can verify that the holdings are convincing value picks (and not just a hodgepodge of DJI and other oldtimer stocks that are very questionably value picks like https://www.ishares.com/uk/individual/en/products/270048/ishares-msci-world-value-factor-ucits-etf?switchLocale=y&siteEntryPassthrough=true). Then I get to the point that if I feel that I can verify that an ETF has a strong collection of value stocks, I may as well have done the due diligence on the individual offerings and saved myself the TER…

    Stig BrodersenStig Brodersen Administrator
    Post count: 224

    Hi Arjan,

    Thank you for your response.

    -Stig

    Price is what you pay. Value is what you get. - Warren Buffett

    Alex MistreanuAlex M Newbie
    Post count: 2

    Hi Arjan,

    Could you please advise how were you able to buy VUSA from Amsterdam?
    On the UK site says they only accept UK citizens.

    Thanks!
    Alex

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