Why can’t I trade ETFs?

Within your Robinhood UK account, you can look up and view details about US exchange-traded funds (ETFs) just like other stocks. However, you’re not allowed to purchase ETFs listed and traded in US markets within the UK because of UK and European regulations.

An ETF is a collection of assets, such as stocks, bonds, or derivatives, where the ownership of the fund is divided into shares that you can track and trade like other securities in the stock markets. ETFs let you invest in a group of companies all at once that are typically grouped by a broader market, a sector, an industry, or even a region.

To learn more, check out What is an Exchange-Traded Fund (ETF)?

Since 2018, investors in the European Union and the UK cannot invest in ETFs that are listed and traded in US markets. This is because rules (PRIIPs) enforced in 2018 require providers of investment products to supply retail investors with regulatory documents, such as a Key Information Document (KID), to help them better understand the product they are buying. ETFs listed and traded in US markets don’t provide these documents.