European ETFs: The Easiest Way to Invest in Europe (2024)

FAQs

What is the best ETF to invest in Europe? ›

The easiest way to invest in the whole European stock market is to invest in a broad market index. This can be done at a low cost by using ETFs. In this curated investment guide, you will find all ETFs that allow you to invest broadly diversified in European stocks. Currently, there are 24 ETFs available.

The EU restrictions on US-ETFs does not affect to sale of options on the respective ETFs. Therefore, a European broker can allow European retail investors to buy and sell options (put and call options) on US-ETFs.

The iShares Europe ETF seeks to track the investment results of an index composed of European equities.

BlackRock and Vanguard captured the lion's share of ETF flows in Europe last year as investors opted for low-cost passive strategies amid a turbulent market environment while DWS and PIMCO suffered outflows.

The easiest way to add international stocks to your portfolio is by investing in U.S.-registered mutual funds or exchange-traded funds that track foreign markets. Why U.S.-registered? To avoid potential risks and costs associated with investing in foreign markets (more on that below).

Another way to invest in the European stock market is to buy foreign stocks through American Depository Receipts (ADRs). In some cases, American Depository Receipts are sponsored by the foreign company itself.

The reason why US-domiciled ETFs are not available for European investors can be summed up in one word: compliance. To be allowed on EU markets, US-domiciled ETFs (exchange-traded funds) are required to produce documentation according to standards prescribed by MiFID, the EU's legal framework for securities trading.

Can I buy Vanguard ETFs in Europe? ›

As a European, you are perfectly eligible to invest in the wide range of Vanguard ETFs available on the market. Yep, you may buy an ETF tracking the S&P 500, DAX, or any other of the leading indices! You have a range of 45+ Vanguard ETFs to choose from. Keep in mind that all these ETFs are EU-domiciled.

International investing can be an effective way to diversify your equity holdings. While returns have lagged behind US markets, international ETFs provide diversification benefits as they tend to be less correlated to US equities.

Besides countries from the Eurozone, like France, Germany, Spain, the Netherlands and Italy, you also have exposure to Great Britain, Switzerland and Scandinavian countries. Due to its broad market exposure, the STOXX Europe 600 index is often quoted as the European equivalent of the U.S. focused S&P 500 index.

Vanguard S&P 500 UCITS ETF

The VUSA ETF is a European version of the S&P 500 index, offering investors in Europe an easy way to access the U.S. stock market. It is managed by Vanguard, a well-respected global asset manager with a long track record of managing low-cost index-tracking funds.

Vanguard FTSE Europe ETF is an exchange-traded share class of Vanguard European Stock Index Fund.

FTSE All-World UCITS ETF (VWRL)

On 11 April 2000, the first two exchange-traded funds (ETFs) based on the Euro Stoxx 50 and the Stoxx Europe 50 were listed on Deutsche Boerse in Germany. With this listing, Merrill Lynch International brought a product to Europe that had been established in the US in 1993.

In this curated investment guide, you will find all ETFs that allow you to invest broadly diversified in European stocks. Currently, there are 17 ETFs available. The total expense ratio (TER) of ETFs tracking stocks from Europe is between 0.05% p.a. and 0.25% p.a.. 0.05% p.a. - 0.25% p.a.

Assets under management in the European ETF market reached €473.6 billion at the end of July 2016. The European ETF industry has over 1,500 ETFs with Ireland leading the way as domicile with 47% of all product structures.

Which Fidelity International Fund is best? ›

When it comes to the best Fidelity mutual fund, we recommend FSKAX. Investors who buy this fund gain exposure to the broad investable U.S. market, covering large-, mid- and small-cap stocks weighted by market cap across all sectors.

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, as discussed below).

US investors

Euronext Paris and Euronext Amsterdam have been recognised by the CFTC as having Foreign Board of Trade (FBoT) status in the United States. Our North American sales team can help you find the best way to trade our markets, including benchmark derivatives instruments, fixed income, ETFs and FX trading.

No. Unfortunately, we do not open accounts for any new customers residing outside the United States.

Yes, it can be possible to sign up for the 'Schwab One International' brokerage account throughout parts of Europe. But, not every country has access and there are some crucial things European investors need to understand about using the platform.

Charles Schwab Europe is located in Birmingham, Birmingham, United Kingdom .

Investors can also buy units of international ETFs, which are run by Indian fund houses. They buy international stocks directly and offer ETFs to Indian investors. Examples of these funds are Motilal Oswal S&P 500 Index Fund and Mirae Asset NYSE FANG+ ETF.

What is the largest non US ETF? ›

The largest Global Ex-US ETF is the Vanguard Total International Stock ETF VXUS with $54.60B in assets.

It is, however, impossible to directly buy the S&P 500 index. What you can do is invest in the S&P 500 through an instrument replicating every movement of the S&P 500, like an Exchange Traded Fund (ETF).

Advantages of investing in ETFs

Because of this broad ownership, ETFs offer the power of diversification, reducing your risk and increasing your returns. A well-diversified ETF such as one based on the S&P 500 can beat most investors over time, making it easy for regular investors to do well in the market.

How much should be invested internationally? In general, Vanguard recommends that at least 20% of your overall portfolio should be invested in international stocks and bonds.

What is the UCITS equivalent of Vanguard S&P 500 (VOO & VFIAX)? The European and UK UCITS Equivalent to VOO ETF or VFIAX Mutual Fund is Vanguard S&P 500 UCITS ETF, with accumulating share classes in GBP and EUR, and distributing share classes in GBP, EUR and CHF.

What is the German equivalent of the S&P 500? ›

The DAX was created in 1988 and tracks 30 of the largest German companies, listed on the Frankfurt Exchange.

The Best European Equity ETFs are Lyxor Core STOXX Europe 600 UCITS ETF and Vanguard FTSE Developed Europe UCITS ETF. The Best Emerging Markets ETF is iShares Core MSCI EM IMI UCITS ETF. The Best Socially-Responsible ETFs will also be included. We avoid screening based on ESG Ratings.

The two indices have a similar number of constituent stocks; the MSCI USA has 626 constituents versus the S&P's 500 companies. Consequently, the MSCI USA has marginally more mid-cap exposure, but it is not a material difference. Both indices are market-cap weighted, so the composition is largely similar.

It is, however, impossible to directly buy the S&P 500 index. What you can do is invest in the S&P 500 through an instrument replicating every movement of the S&P 500, like an Exchange Traded Fund (ETF).

The largest Equal-Weighted ETF is the Invesco S&P 500 Equal Weight ETF RSP with $33.53B in assets. In the last trailing year, the best-performing Equal-Weighted ETF was FNGU at 71.21%. The most recent ETF launched in the Equal-Weighted space was the SoFi Web 3 ETF TWEB on 08/09/22.

Fidelity and Vanguard are two of the largest investment companies in the world. Fidelity boasts 40 million individual investors and $9.9 trillion in assets under management (AUM).

VXUS-Vanguard Total International Stock ETF.

Is Fidelity available in Europe? ›

No. Unfortunately, we do not open accounts for any new customers residing outside the United States.