Open an ETF in Luxembourg

Open an ETF in Luxembourg

Updated on Tuesday 30th April 2024

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Foreign investors can open an ETF in Luxembourg. ETF stands for exchange traded funds, which refer to any category of funds whose shares or units are traded on at least one stock exchange. According to the law in Luxembourg, the ETF will generally take the form of an UCITS fund (undertakings for collective investment in transferable securities), but other options are available as well. 
 
It must be noted that those who want to open a Luxembourg fund as an ETF can confidently choose this market, as it is one of the leading financial centers in Europe. For professional assistance on the registration, our team of financial advisors remains at your service. Our consultants can also help you register a SOPARFI in Luxembourg. 
 

Authorization obligations for a Luxembourg ETF 

 
When you will open an ETF in Luxembourg, it is necessary to obtain an authorization for operations in this country – this is necessary for all investments fund registered as UCITS ETFs. The authorization is required so that the fund can initiate its public distribution on the market of choice (it must be noted that this obligation is imposed regardless of the jurisdiction selected by the investors). 
 
Once the investment fund in Luxembourg is set up and it has obtained the necessary authorization, it can be listed on the Luxembourg Stock Exchange (the fund can be listed on other stock exchanges, it is not imposed to be limited only to a single exchange). 
 
The decision to trade the fund’s assets on a single or multiple exchanges will established as a part of the distribution strategy the investors opted for. Our team of financial experts can help you list the ETF on the stock exchange following the internal rules of the exchange. 
 
In Luxembourg, authorization must be obtained from the country’s main financial institution, the Financial Sector Supervisory Commission (CSSF). Our team can help you prepare the documentation that must be submitted to the institution. We can also help you comply with the CSSF formalities imposed for other types of funds, such as the SICAR in Luxembourg or the RAIF in Luxembourg. 
 
Once the registration and authorization formalities have been completed, the Luxembourg ETF can be listed on the Luxembourg Stock Exchange in just 2 days. Please know that investment funds in Luxembourg registered as ETFs are exempt from paying the annual subscription tax (calculated on the net assets), therefore investors can benefit from certain tax advantages. 
 

What types of services can our team offer for a Luxembourg ETF? 

 
Our team can help investors gather the documentation for the set up of the Luxembourg ETF (we can provide the same service if you want to open a SIF in Luxembourg as well). We can assist during the licensing/authorization formalities. 
 
Furthermore, our team can help you establish your distribution policy and initiate the listing procedure, after the registration with the stock exchange. You can also rely on us for ongoing legal services on taxation of the fund, regulatory procedures, reporting and others, services we can also offer for those who want to open a SICAV in Luxembourg. 
 

Why opt for investments in ETF? 

 
It is advisable to open an ETF in Luxembourg not only because this country is one of the largest markets for ETF investments, but also because the ETF structure is a very popular means of investment at a global level. Below, you can discover some of the recent data on ETF investments: 
 
  • by the end of 2023, the global assets under management of ETF funds had a value of $ 10 trillion (or EUR 9,3 trillion);
  • by the end of the 3rd quarter of 2023 (September), European ETFs had assets under management accounting for $1,5 trillion (or EUR 1,4 trillion);
  • at a European level, there were 2,074 ETFs registered in 2023;
  • foreign businessmen can open investment funds in Luxembourg as ETFs, as this is the 2nd largest market in Europe, where this type of fund becomes more and more popular.  
 
We also welcome foreign investors to address us for other types of financial services, such as private equity in Luxembourg. We invite you to contact our team of consultants for additional information on the Luxembourg ETF.