How to buy Vanguard's S&P 500 traded in the USA with the new mifid II regulation?


I am fairly new to investments. I was doing some research last year and I decided to open an account with Degiro and to buy Vanguard S&P 500 (US9229083632). To my surprise, that is not possible at the current time, due to the fact that Vanguard hasn’t released information about this ETF in German, French or Italian and that there’s a new European regulation requiring that funds release this sort of information (Mifid II). So, how can I buy Vanguard S&P 500 traded at the US at the present time ? If I open up an account with IB will I be able to do it ? I am pretty lost at the present time. Thank you

Will follow the conversation as I’m interested in the same topic.

Update: I have been reading lots of resources on the internet in the past 2 days. From what I understand, there is a new legislation called Priips and it is part of a larger law called MiFID II (read more here).

According to the discussion here, Vanguard is referring to its Irish funds and isn’t currently planning to update whatever they need to update or provide regarding its US-based funds. It all just seems very weird to me. Someone also claims that with IB you can still purchase the US-based funds. Can anyone here confirm it ?

This article talks about a British broker dropping American funds.

At swissquote everything looks as always. I have to accept all kinds of terms and conditions before they let me trade anything at NYSE.

I have no problems buying US ETFs on IB at the moment and didn’t get any messages regarding mifid from them

same here, just bought my 5 ETFs as always, no differences

The new regulation (“PRIIPS”) seems to be EEA-only, of which Switzerland is not a member.

I guess degiro just being too paranoid or they don’t know their own clients’ geography.

Or maybe they’re just being greedy: there’s not much money to make brokering already ultracheap US trades, and now they’ve got a perfect excuse to sway the clientele into more expensive venues. Kind of makes me think that it’s probably the bank lobby behind this ridiculous new rule - to reduce competition and lock up the clients right where they need them, all under the perfect disguise of caring about the consumers’s safety

1 Like

@hedgehog: do you know where I can find the list of Vanguard’s ETF that is possible to trade on IB? Thanks

I wouldn’t really worry about that. At least as far as US equities go, they have everything you could possibly want to buy. Non US or non equities, that’s where they sometimes have gaps in coverage

Thanks a lot for the link.

Here is a link to a polish website Independent Trader, where the author claims that this new MIFID regulation is a way of Wall Street to make ETFs harder to understand and buy to a beginner. His theory is that the actively managed funds are losing customers to index funds, so they classify ETFs as a risky instrument, so that they have to provide this KIID in many languages.

What do you think, makes sense, or just another tinfoil hat conspiracy theory?

Got confirmation from SwissQuote that nothing changes for Swiss based customer.

1 Like