UCITS, or Undertakings for Collective Investment in Transferable Securities, are investment funds that comply with European Union regulations 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 US-listed ETFs.

For Fixed Income UCITS, the withholding tax is 0% compared to 30% for the US-listed ETFs.

Example:

If a dividend of $100 is paid out by both a US stock and a UCITS ETF:

• US ETF: You will pay $30 in withholding tax (30%), meaning you will receive $70.
• UCITS ETF: You will pay $15 in withholding tax (15%), meaning you will receive $85.
• UCITS Fixed Income UCITS: You won’t have to pay any withholding tax (0%), meaning you will receive all $100.

With lower withholding taxes on UCITS ETFs, you can enjoy a higher net dividend income as a long-term investor.

Strong protection

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

Global access

• Access to global markets and assets 
• Easy diversification