Regarding US domiciled ETFs when you retire in Europe

[Lelouch]

I tried looking up up the answer online, but it seems there isn't really a consensus on a real answer.

My question is: knowing that you cannot buy US ETFs like VT or VOO in European countries, when you retire (and let's assume you chose an European country like Italy to retire in) will you still be able to keep and then sell your positions while living in a European country?

I get that you won't be able to buy more shares, but what about those you have? Will we have to sell everything before we leave Switzerland?

 

[Baptiste Wicht]

Hi

Normally, you should indeed be able to keep them, just won't be able to buy more of them. You should not have to sell. There is even a workaround using options to buy them while in Europe, it's not convenient, but I know of people doing that and keeping the shares.

So, even if you retire in Europe, it makes sense to buy US ETFs while in Switzerland.

 

[The Roving Rodent]

I left Switzerland and moved to Portugal with a bunch of US CEFs (closed end funds) in my account. I keep the shares and receive dividends as before, but I cannot buy any more. Some allow me to choose a stock dividend and that works just fine.
I see no reason to assume that CEFs and ETFs or other types of mutual fund are treated any differently.
If options are traded on the ETFs mentioned, then you can effectively bypass the restriction and acquire more shares that way.

 

[Lelouch]

Hi

Normally, you should indeed be able to keep them, just won't be able to buy more of them. You should not have to sell. There is even a workaround using options to buy them while in Europe, it's not convenient, but I know of people doing that and keeping the shares.

So, even if you retire in Europe, it makes sense to buy US ETFs while in Switzerland.

I left Switzerland and moved to Portugal with a bunch of US CEFs (closed end funds) in my account. I keep the shares and receive dividends as before, but I cannot buy any more. Some allow me to choose a stock dividend and that works just fine.
I see no reason to assume that CEFs and ETFs or other types of mutual fund are treated any differently.
If options are traded on the ETFs mentioned, then you can effectively bypass the restriction and acquire more shares that way.

Okay thank you both, that's great !

 

[Badomb]

Looks like I am really bad with investments, guys. Now thanks to this forum and subject, I got the explanation as to why I cannot buy into US ETFs like VT or VOO, but only QQQ and others, I was trying hard with my IBKR account. Thanks everyone.

So, what fund would you recommend to a Swiss person, buying based in CH via IBKR to last until retirement (we speak 15-20 years max).

 

[gaijin]

knowing that you cannot buy US ETFs like VT or VOO in European countries

Interesting. I had no idea this was not possible. Is there any good reading or information on this topic? I mean just about the reasoning for not being able to buy US ETFs in European countries, and what is meant by 'European country'.

 

[Lelouch]

Interesting. I had no idea this was not possible. Is there any good reading or information on this topic? I mean just about the reasoning for not being able to buy US ETFs in European countries, and what is meant by 'European country'.

There are many articles about it, a random one: https://www.eurekawealthmanagement..../30/eu-rules-block-investors-from-buying-etfs
If you want to have a look at the regulation itself: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32014R1286

European countries = EU

 

[The Roving Rodent]

There are many articles about it, a random one: https://www.eurekawealthmanagement..../30/eu-rules-block-investors-from-buying-etfs
If you want to have a look at the regulation itself: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32014R1286

European countries = EU

UK too. Despite BREXIT, the UK kept this regulation and has even extended it since.

 

[Baptiste Wicht]

So, what fund would you recommend to a Swiss person, buying based in CH via IBKR to last until retirement (we speak 15-20 years max).

Your message confused me because you say you cannot buy them although you should be able to. If you are Swiss and living in Switzerland and using IBKR, you should be able to buy VT simply.

If you can't, you should contact the support of IB to get the situation fixed.

Is there any good reading or information on this topic?

Some information here:

Swiss Investors May Lose Access To US-Domiciled ETFs - The Poor Swiss

Starting in 2022, U.S. domiciled funds will not be available to Swiss investors. DEGIRO decided to enforce this early, in 2019. What can we do?

thepoorswiss.com