Establishing a European ETF in Ireland

October 05, 2017

An exchange traded fund (ETF) is an investment fund that is structured to allow intra-day trading of its shares on a stock exchange using real time pricing in the same manner as any other ordinary stock or share that may be traded. This differs from traditional investment funds which may only provide for direct subscriptions and redemptions of their shares on a periodic basis using the net asset value per share. This report explores the three key legal components in establishing a European ETF. These components are:

  1. creating a UCITS investment fund;
  2. building in specific ETF operational and regulatory compliance within the UCITS; and
  3. listing the shares of the ETF on a stock exchange and complying with the individual requirements of each relevant stock exchange.