The Great ETF Wall: Why Europeans Can’t Buy U.S. ETFs (and What to Buy Instead)
If you’ve ever tried to buy SPY, VOO, or QQQ from a European broker, you’ve probably run into a frustrating wall of regulation.
The ETFs are right there — cheap, efficient, and liquid — yet your broker tells you:
“This product is not available to retail investors in the European Economic Area.”
Let’s unpack why that happens and what you can do about it.
1. The Regulation That Broke Everything: PRIIPs
The problem is a rule called PRIIPs — short for “Packaged Retail Investment and Insurance Products.”
Since 2018, all ETFs and funds sold to retail investors in the EU must include a three-page “Key Information Document” (KID) written in a very specific format.
U.S. ETF issuers like Vanguard, BlackRock, and State Street already comply with U.S. SEC disclosure rules.
They didn’t want to create a second set of EU-specific documents.
No KID means your EU broker can’t legally offer those ETFs.
2. Retail vs. Professional Investors
Under MiFID II, investors are classified as either Retail or Professional.
Retail investors get more protection, but also more restrictions.
If you’re classified as Professional (for example, by having a portfolio above €500,000 or working in finance), you can still access U.S. ETFs.
Everyone else is blocked.
3. The Workaround: UCITS ETFs
Fortunately, there are European equivalents called UCITS ETFs.
They are domiciled in Ireland or Luxembourg, follow EU rules, and include those required KIDs.
They often track the same index as the famous U.S. ETFs.
You can buy these through EU brokers such as DEGIRO, Nordnet, or Interactive Brokers EU.
4. U.S. ETF to UCITS Alternatives
Below is a simplified list showing the closest European (UCITS) equivalent for each major U.S. ETF.
U.S. ETF → UCITS Equivalent
| US ETF | What it is | Exposure | UCITS alternative(s) |
|---|---|---|---|
| VOO | Tracks the S&P 500, 500 largest US companies | S&P 500 | iShares Core S&P 500 UCITS (CSPX) / Vanguard S&P 500 UCITS (VUSA, VUAA) |
| IVV | Same as VOO, ultra-liquid S&P 500 ETF | S&P 500 | iShares Core S&P 500 UCITS (CSPX) / Vanguard S&P 500 UCITS (VUSA, VUAA) |
| SPY | Original S&P 500 ETF, launched 1993 | S&P 500 | iShares Core S&P 500 UCITS (CSPX) / Vanguard S&P 500 UCITS (VUSA, VUAA) |
| VTI | Covers entire US stock market – large + small caps | Total US market | iShares Core MSCI USA UCITS / Vanguard FTSE North America UCITS (VNRA / VNRT) |
| QQQ | Nasdaq-100, tech-heavy giants like AAPL & MSFT | Nasdaq-100 | Invesco EQQQ NASDAQ-100 UCITS (EQQQ) / iShares NASDAQ-100 UCITS (CNDX) |
| VUG | Large-cap growth names (AAPL, AMZN, MSFT) | US growth | iShares S&P 500 Growth UCITS (IUGR) |
| VEA | Developed markets outside US & Canada | Developed ex-US | iShares MSCI World ex USA UCITS / Xtrackers MSCI World ex USA UCITS |
| IEFA | Same as VEA (EAFE countries) | Developed ex-US | iShares MSCI World ex USA UCITS / Xtrackers MSCI World ex USA UCITS |
| VTV | Large-cap value (energy, banks, defensives) | US value | iShares S&P 500 Value UCITS (IUVL) |
| BND | Total US bond market (aggregate) | US bonds | iShares Core Global Agg Bond UCITS (AGGH) / Vanguard Global Agg Bond UCITS (VAGF) |
| AGG | Same index as BND (Bloomberg Agg) | US bonds | iShares Core Global Agg Bond UCITS (AGGH) / Vanguard Global Agg Bond UCITS (VAGF) |
| GLD | Physical gold backed ETF | Gold bullion | iShares Physical Gold ETC (SGLN) / WisdomTree Physical Gold (PHAU) |
| IWF | Russell 1000 Growth (stocks like GOOG, MSFT) | US growth | iShares S&P 500 Growth UCITS (IUGR) |
| IEMG | Broad Emerging Markets (all cap segments) | EM equities | iShares Core MSCI EM IMI UCITS (EIMI) / Vanguard FTSE EM UCITS (VFEM) |
| VGT | Pure tech sector ETF | Technology | iShares S&P 500 Info Tech UCITS (IUIT) |
| VXUS | Global ex-US stocks | International ex-US | iShares MSCI World ex USA UCITS (+ EIMI for EM) |
| VWO | Emerging markets large + mid-caps | EM equities | Vanguard FTSE EM UCITS (VFEM) / iShares Core MSCI EM IMI UCITS (EIMI) |
| IJH | US mid-cap stocks (S&P MidCap 400) | Mid-cap US | SPDR S&P U.S. Mid Cap UCITS (SPY4) |
| VIG | Dividend growth companies (US) | Dividend growth | SPDR S&P US Dividend Aristocrats UCITS (SPYD / UDVD) |
| XLK | S&P 500 technology sector | Technology | iShares S&P 500 Info Tech UCITS (IUIT) |
| IBIT | Spot Bitcoin ETF | Digital asset | No UCITS equiv – use 21Shares / CoinShares ETPs (non-UCITS) |
| VO | US mid-cap blend | Mid-cap US | SPDR S&P U.S. Mid Cap UCITS (SPY4) |
| SPLG | Low-cost S&P 500 ETF | S&P 500 | iShares Core S&P 500 UCITS (CSPX) / Vanguard S&P 500 UCITS (VUSA, VUAA) |
| IJR | US small caps (S&P SmallCap 600) | Small-cap US | iShares S&P SmallCap 600 UCITS (IUS3) |
| ITOT | Broad US stock market | Total US market | iShares Core MSCI USA UCITS / Vanguard FTSE North America UCITS (VNRA / VNRT) |
| RSP | Equal-weight S&P 500 | Equal-weight S&P | Invesco S&P 500 Equal Weight UCITS (SPEQ) |
| SCHD | High-dividend US stocks | Dividend equity | SPDR S&P US Dividend Aristocrats UCITS (SPYD / UDVD) / iShares MSCI USA Quality Div UCITS (QDIV) |
| BNDX | Global bonds ex-US (hedged) | Int’l bonds | Vanguard Global Agg Bond UCITS (VAGF) |
| IWM | US small caps (Russell 2000) | Small-cap US | iShares S&P SmallCap 600 UCITS (IUS3) |
| VB | US small caps (broad) | Small-cap US | iShares S&P SmallCap 600 UCITS (IUS3) |
| EFA | Developed markets ex-US | Developed ex-US | iShares MSCI World ex USA UCITS |
| IVW | S&P 500 growth stocks | Growth factor | iShares S&P 500 Growth UCITS (IUGR) |
| VYM | High-dividend yield US stocks | Dividend yield | SPDR S&P US Dividend Aristocrats UCITS (SPYD / UDVD) / Vanguard FTSE All-World High Div UCITS (VHYL) |
| IWD | Russell 1000 Value ETF | US value | iShares S&P 500 Value UCITS (IUVL) |
| QQQM | Nasdaq-100 (low-fee) | Nasdaq-100 | Invesco EQQQ NASDAQ-100 UCITS (EQQQ) / iShares NASDAQ-100 UCITS (CNDX) |
| SCHX | US large-caps | S&P 500 proxy | iShares Core S&P 500 UCITS (CSPX) / Vanguard S&P 500 UCITS (VUSA, VUAA) |
| IAU | Gold ETF (physical) | Gold bullion | iShares Physical Gold ETC (SGLN) / WisdomTree Physical Gold (PHAU) |
| SGOV | Ultra-short US T-Bills | Short-term bonds | SPDR Bloomberg 1–3 Month T-Bill UCITS (TBIL) / iShares $ Treasury 0–3 Month UCITS (U03A) |
| VCIT | Intermediate-term corporate bonds | Corp bonds | iShares $ Corp Bond UCITS (LQDE) / Vanguard USD Corp Bond UCITS (VUCP) |
| VT | Total world equities | Global market | Vanguard FTSE All-World UCITS (VWCE / VWRD) / iShares MSCI ACWI UCITS (SSAC) |
| XLF | Financial sector ETF | US financials | iShares S&P 500 Financials UCITS (IUFS) |
| QUAL | Quality factor ETF | US quality stocks | iShares Edge MSCI USA Quality Factor UCITS (IUQA) |
| SCHF | International developed markets | Developed ex-US | iShares MSCI World ex USA UCITS / Xtrackers MSCI World ex USA UCITS |
| VEU | All-World ex-US | Global ex-US | iShares MSCI World ex USA UCITS / Xtrackers MSCI World ex USA UCITS |
| SCHG | US large-cap growth | Growth factor | iShares S&P 500 Growth UCITS (IUGR) |
| IXUS | Total international ex-US | Global ex-US | iShares MSCI World ex USA UCITS / Xtrackers MSCI World ex USA UCITS |
| TLT | 20 + year US Treasuries | Long-term bonds | iShares $ Treasury Bond 20 + yr UCITS (IDTL) |
| VV | US large-cap blend | S&P 500 proxy | iShares Core S&P 500 UCITS (CSPX) / Vanguard S&P 500 UCITS (VUSA, VUAA) |
| IWR | US mid-caps (Russell Midcap) | Mid-cap US | SPDR S&P U.S. Mid Cap UCITS (SPY4) |
| SPYG | S&P 500 growth stocks | Growth factor | iShares S&P 500 Growth UCITS (IUGR) |
5. Key Differences Between U.S. and UCITS ETFs
- UCITS ETFs have slightly higher annual costs (TER 0.07–0.25%).
- Liquidity is lower, but still fine for retail investors.
- Dividends inside UCITS funds are taxed at around 15% due to U.S.–Ireland treaties.
- Some ETFs offer “accumulating” (reinvesting) or “distributing” (payout) versions.
- Currency-hedged versions exist for EUR or GBP investors.
6. Example UCITS Portfolio
A simple global portfolio that mirrors what many investors do with U.S. ETFs:
- 80% Vanguard FTSE All-World UCITS (VWCE)
- 15% iShares Core Global Aggregate Bond UCITS (AGGH)
- 5% iShares Physical Gold ETC (SGLN)
This gives worldwide equity exposure, global bonds for stability, and gold as a small hedge.
Rebalance once per year.
7. The Bottom Line
European regulations were meant to protect investors, but they’ve mostly created confusion and barriers.
Still, UCITS ETFs are excellent products — diversified, transparent, and fully compliant.
So when your broker blocks SPY, don’t despair.
Buy CSPX instead.
Same stocks, same exposure — just with an Irish accent.