Competitors to host exchange-traded funds has been heating up between Luxembourg and Eire, with each providing engaging funding perks.
Amundi, one in every of Europe’s largest asset managers, has relocated one other of its exchange-traded funds (ETFs) from Luxembourg to Eire.
“This transfer of fund domicile, which is technically a fund merger, implies that the traders will obtain an improved efficiency in the long run with an unchanged publicity,” an Amundi spokesperson mentioned.
The fund in query, with complete property of €6.7bn, was Amundi’s third-largest fund domiciled in Luxembourg.
The announcement doesn’t mark a brand new step for the agency, which beforehand moved seven ETFs from Luxembourg to Eire in 2013, price €12.3bn.
Commenting on the choice, Amundi mentioned that “Eire gives important benefits for ETFs investing in US equities, primarily as a result of lowered withholding tax on dividends”.
“Which means that traders profit from larger web returns in the long run,” the spokesperson added.
ETFs domiciled in Eire notably solely pay 15% withholding tax on US dividends, whereas these primarily based in Luxembourg pay 30%.
Eire is gaining market share
Eire and Luxembourg are the 2 hottest European domiciles for ETFs, though Eire has progressively been gaining on its competitor.
“The market has proven a transparent choice for Eire when launching lively ETFs, that are anticipated to drive progress in new ETF launches within the coming years,” Kenneth Lamont, principal Morningstar analyst, informed Euronews.
Eire was dwelling to €1.6tn of ETF property in the beginning of 2025, whereas Luxembourg housed €387bn, in accordance with Morningstar information.
market share in Europe, Eire accounts for round 70%, whereas Luxembourg accounts for 18%.
Profitable over traders
The smaller nation has nonetheless been “combating again,” Lamont mentioned.
Luxembourg’s monetary regulator was notably the primary European nation to “allow semi-transparent ETFs”, whereas “the primary tokenised UCITS fund is ready to launch within the area quickly too”, he defined.
Semi-transparent ETF guidelines enable managers to be extra secretive about funds, which will help to guard traders from opponents.
A tokenized UCITS fund is a kind of funding car that makes use of blockchain expertise to indicate possession by means of digital tokens.
Amundi additionally introduced on Friday that it had listed 11 ETFs on the London Inventory Change, which it mentioned “reaffirmed its dedication to the UK market”.