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Parliamentary question - E-004745/2021Parliamentary question

Restricted access to US ETFs for ordinary EU retail investors 

Question for written answer  E-004745/2021
to the Commission
Rule 138
Eugen Jurzyca (ECR)

Since 2018, ordinary investors in the European Union cannot invest in US exchange-traded funds (US ETFs)[1]. This is because rules[2] came into force in 2018 requiring providers of investment products to supply retail investors with a ‘key information document’ (KID) to help them better understand the product they are buying. US ETFs do not provide such a document.

According to certain views[3], US issuers cannot develop KIDs for their US ETFs. One reason for this is the fact that PRIIPs require disclosure of likely future performance under four different scenarios, and US issuers cannot make such forecasts under US legislation.

An unintended consequence of PRIIPs for ordinary retail investors may therefore be that their ability to invest in US ETFs, which have significantly lower fees than European UCITS funds, may become restricted.

Last updated: 29 October 2021
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