What Are UCITS Equivalents Of Popular Vanguard Funds? (2024)

FAQs

What is the UCITS equivalent of VOO? ›

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.

The index is a capitalisation-weighted index of 500 US stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of the 500 stocks representing all major industries.

An Undertaking for Collective Investment in Transferable Securities (UCITS) is an investment fund that invests in liquid assets and can be distributed publicly to retail investors across the EU.

UCITS funds are a type of mutual fund that complies with European Union regulations and holds securities from throughout the region.

Tracked indices must be sufficiently diversified UCITS ETFs are identified by the “UCITS ETF” label in the fund name. This enables investors to quickly identify funds that are subject to the UCITS regulatory framework.

The term “undertaking for collective investment in transferable securities” (UCITS) should not require much explanation, it speaks for itself: It is an undertaking for collective investment (or “investment fund”) which invests in securities, i.e. in stocks, bonds, stocks and bonds, short term treasury instruments and ...

The non-UCITS QIF has no borrowing limit, whereas a UCITS can only borrow up to a maximum of 10 per cent of assets and even then only on a temporary basis. The QIF has no leverage limit, whereas in general in a UCITS fund the global exposure cannot exceed the Net Asset Value.

The main differences between UCITS and non-UCITS funds relate to the way in which the funds are marketed to investors and the proposed investment policies of the funds.

UCITS is a set of voluntary rules which many ETFs follow. ETFs which are UCITS compliant must follow minimum standards - that includes holding a diversified portfolio, publishing clear guidance on their charges and taking steps to safeguard investors' money.

But for U.S. investors, buying into UCITS funds is a little different than buying traditional mutual funds. You can purchase UCITS funds through a U.S.-based fund manager. That said, only an authorized EU-based management company can oversee that fund.

What are the different types of UCITS? ›

Index tracking UCITS. Index-tracking leveraged UCITS. UCITS ETFs – identifier and specific disclosure. Actively-managed UCITS ETFs disclosure.

Vanguard Funds plc has been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the Funds' prospectus for further information.

UCITS are a very successful product: there are more than 30,000 UCITS funds in the EU which represent over €9 trillion of assets under management. ▸ To report about an infringement of national provisions transposing the UCITS Directive, please consult the Whistleblowers section.

UCITS were created so that retail investors have transparent, regulated, and cross-border investment opportunities. UCITS funds are perceived as safe and well-regulated investments and are popular among many investors looking to invest across Europe.

Features of UCITS Funds

The main are: Diversification: UCITS funds aim to reduce investment risk by diversifying their portfolios cross different securities, sectors, and geographic regions. Liquidity: UCITS funds must maintain sufficient liquidity to meet investor redemptions quickly and efficiently.

Vanguard S&P 500 UCITS ETF USD Accumulation (VUAG)

This Fund seeks to track the performance of the Index, a widely recognised benchmark of U.S. stock market performance that is comprised of the stocks of large U.S. companies.

What are UCITS funds? UCITS is an acronym for Undertakings for the Collective Investment in Transferable Securities. It is a regulatory framework for the creation and distribution of mutual funds in the European Union. UCITS funds simply refer to mutual funds that adhere to the UCITS framework.

UCITS can operate as a standalone fund or as an umbrella fund, with multiple sub-funds with segregation of liability assets and liabilities at sub-fund level.

A UCITS may not make investment in closed ended funds for the purposes of circumventing the normal UCITS investment limits.

UCITS rules state a fund's top holding must remain below 35% of the portfolio while no other security can exceed 20%. The two ETFs previously tracked indices that held single securities with a weighting greater than 35% meaning BlackRock was manually required to ensure the ETFs did not exceed this limit.

What is the maximum cash UCITS fund? ›

A UCITS must limit Ancillary Liquid Assets to bank deposits at sight, such as cash held in current accounts with a bank accessible at any time. Ancillary Liquid Assets held are limited to 20% of the net assets of a UCITS.

UCITS or 'undertakings for the collective investment in transferable securities' are investment funds regulated at European Union level. They account for around 75% of all collective investments by small investors in Europe.

There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.0.

UCITS. UCITS is an abbreviation for Undertakings for Collective Investment in Transferable Securities – these are open-ended funds set up subject to EU legislation. The legislation was designed to allow these funds to be marketed across the EU and to allow fund managers to operate in other EU countries.

The primary difference between ETFs and index funds is how they're bought and sold. ETFs trade on an exchange just like stocks, and you buy or sell them through a broker. Index funds are bought directly from the fund manager.

An EU/EEA regulation called MiFID requires brokers to categorize their clients as either “retail” or “professional” in order to determine the correct level of investor protection and transparency. MiFID has thus prohibited EU-residents from investing and trading in US ETFs, like for example SPY, XLP, EEM, etc.

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.

Vanguard offers an online platform that allows investors to purchase and manage investments from anywhere in the world. The main advantage of online investing is the convenience and accessibility it offers, as it allows expatriates to purchase and manage their investments from anywhere in the world.

UCITS is a financial vehicle that allows a group of investors to invest their money under a predetermined investment objective. The UCITS have a fund manager, who is responsible for investing money in the underlying securities. By investing in a UCITS, essentially, the investor buys units and becomes a unitholder.

A UCITS ETF is an exchange traded fund that follows a system of safety measures in accordance with UCITS regulations. This means that its holdings must be diversified, with no single holding above 10% of the fund's net asset value (NAV).

What is the difference between a Vanguard fund and a Vanguard ETF? ›

With a mutual fund, you buy and sell based on dollars, not market price or shares. And you can specify any dollar amount you want—down to the penny or as a nice round figure, like $3,000. With an ETF, you buy and sell based on market price—and you can only trade full shares.

Almost half of all European UCITS and AIFs net assets are domiciled in Luxembourg and Ireland. Both countries have experienced steady growth rates of UCITS net assets of around 20 percent.

Hedge funds are largely unconstrained in their investment style and the instruments traded. Alt UCITS funds are subject to additional rules on fund terms, concentration, liquidity, portfolio transparency and instruments traded. They also tend to have lower fees than the “two and 20” seen in traditional hedge funds.

An individual investment in another UCITS fund must not exceed 20 per cent of assets, while no more than 30 per cent of the UCITS fund's portfolio can be invested in non-UCITS funds.

» Investors tend to concentrate their assets in lower-cost UCITS. In 2021, the simple average ongoing charge for all equity UCITS was 1.42 percent, compared with an asset- weighted average of 1.21 percent.

Article 50(2)(a) of the UCITS Directive provides that “a UCITS may invest no more than 10% of its assets in transferable securities or money market instruments other than those referred to in paragraph 1” (i.e. transferable securities and money market instruments traded on regulated markets, UCITS and UCITS equivalents ...

UCITS include the possibility of low returns for investors. For fund managers, negatives include the higher cost to set up a UCITS, and the potential for lower fees for these funds.

VOO and VFIAX are both funds offered by Vanguard and they both seek to track the performance of the S&P 500, which is a market-cap-weighted index of the largest U.S. publicly traded companies.

What mutual fund is VOO equivalent to? ›

The main difference is that VFIAX is a mutual fund while VOO is an exchange-traded fund.

The Vanguard S&P 500 ETF (VOO -0.37%) has a low minimum investment of one share ($355 as of March 14, 2023) and a low expense ratio of 0.3%. This index fund-like product trades on a major stock exchange, allowing investors to buy and sell like they would a stock.

The Vanguard 500 Index Fund Admiral Class (VFIAX) and the SPDR S&P 500 ETF (SPY) are similar investment products. Both track the S&P 500, a U.S. stock index comprising 500 companies with the largest market capitalizations.

FXAIX is a mutual fund managed by Fidelity, whereas VOO is an Exchange Traded Fund (ETF) managed by Vanguard.

UCITS is a set of voluntary rules which many ETFs follow. ETFs which are UCITS compliant must follow minimum standards - that includes holding a diversified portfolio, publishing clear guidance on their charges and taking steps to safeguard investors' money.

UCITS or 'undertakings for the collective investment in transferable securities' are investment funds regulated at European Union level. They account for around 75% of all collective investments by small investors in Europe.

Does it make sense to have both VTI and VOO? For most investors, it probably doesn't make sense to own both. VTI and VOO both provide great diversification at a low cost. However, you may find that your retirement plan at work doesn't offer a total stock market index fund like VTI.

The largest Equal-Weighted ETF is the Invesco S&P 500 Equal Weight ETF RSP with $36.33B in assets. In the last trailing year, the best-performing Equal-Weighted ETF was FNGU at 143.83%. The most recent ETF launched in the Equal-Weighted space was the SoFi Web 3 ETF TWEB on 08/09/22.

In this article we've looked at several factors between VTSAX and VOO. Overall, you can't go wrong with either fund. If you prefer a little more exposure to small-cap securities then VTSAX is for you. If you'd rather place your trust in America's top 500 companies then VOO would be your choice.

The main difference that investors should note is in the expense ratios where SPY costs 0.09% while VOO and IVV cost 0.03%. Data provided below is accurate as of 30 May 2023.

What is the difference between VOO and S&P 500? ›

The S&P 500 represents 500 of the largest U.S. companies. The goal of the Vanguard S&P 500 ETF is to track the returns of the S&P 500 index. VOO appeals to investors because it's well-diversified and is made up of equities of large corporations—called large-cap stocks.