UCITS, or Undertakings for Collective Investment in Transferable Securities, are investment funds that comply with European Union regulations, and designed to protect investors. They offer several key benefits:

Tax advantages: UCITS ETFs typically benefit from a 15% withholding tax on dividends, which is generally lower than the 30% withholding tax applied to US ETFs. This means that, in most cases, investors in UCITS ETFs will receive more of their dividend income compared to investing in US-listed ETFs.

Example:

Suppose a $100 dividend is paid out by both a US ETF and a UCITS ETF:

• US ETF: You will pay $30 in withholding tax (30%), and receive $70 in dividends.
• UCITS ETF: You will pay $15 in withholding tax (15%), and receive $85 in dividends.

This lower withholding tax on UCITS ETFs can result in higher net dividend income for long-term investors.

Strong protection

• Strict EU regulatory oversight
• High governance standards
• Enhanced investor protection

Global access

• Access to global markets and assets
• Easy diversification