Global ETF Guide for Non-US Investors: UCITS vs US-Domiciled

Three reasons non-US investors should generally avoid US-domiciled ETFs: (1) MiFID II/PRIIPs blocks UK and EU retail investors from buying US ETFs without a KIID document — most US ETF providers don't issue KIIDs; (2) US estate tax applies to non-US persons holding US-situs assets above $60,000 at death, at rates up to 40%; (3) dividend withholding tax of 30% (reduced to 15% with W-8BEN for treaty countries, but UCITS ETFs achieve better rates through the Ireland–US treaty).

UCITS ETFs domiciled in Ireland benefit from: (1) The Ireland–US double tax treaty, which reduces US dividend withholding to 15% at the fund level (vs 30% for some other jurisdictions); (2) No US estate tax — Irish-domiciled funds are non-US situs assets; (3) Availability to EU, UK, and Asian retail investors under MiFID II/local rules; (4) Available in GBP, EUR, CHF, and AUD share classes, enabling currency conversion at the fund level.

• Vanguard FTSE All-World UCITS ETF (VWRL/VWRA) — 3,000+ stocks globally, TER 0.22%
• iShares Core MSCI World UCITS ETF (IWDA) — 1,500+ developed markets stocks, TER 0.20%
• iShares Core S&P 500 UCITS ETF (CSPX/CSP1) — S&P 500 exposure, TER 0.07%
• Vanguard S&P 500 UCITS ETF (VUSA/VUSD) — S&P 500 alternative, TER 0.07%
• iShares MSCI Emerging Markets UCITS ETF (EIMI) — EM exposure, TER 0.18%
• Invesco NASDAQ-100 UCITS ETF (EQQQ) — tech-heavy, TER 0.30%