UCITS ETFs

UCITS ETFs are exchange-traded funds that comply with European Union regulations for Undertakings for Collective Investment in Transferable Securities ("UCITS"). The UCITS framework is designed to give investors a safe, transparent, and accessible way to invest in a diversified set of assets, with strict rules around diversification, limits on illiquid holdings, and requirements for independent custodians and depositaries.

DriveWealth now brings UCITS ETFs to its unified API, giving clients a way to offer non-US customers a localized, tax-efficient investing experience without leaving the DriveWealth platform. For too long, non-US investors have had to choose between navigating the complexity of the US tax system or going without top-tier portfolio diversification. UCITS ETFs close that gap: clients get access to a broad universe of USD-denominated funds listed on the London Stock Exchange, and their customers get a way to invest locally while growing globally.

Why UCITS ETFs

Optimized tax structures. UCITS ETFs offer dividend withholding structures optimized for non-US residents, so customers keep more of their returns.
Regulatory protection. UCITS funds are held to the highest standard of European-regulated investor safety, including independent custody and diversification requirements.
Seamless integration. UCITS ETFs are available through the same DriveWealth API endpoints clients already use for equities and other assets — one API, total access, no additional integration work.

Coverage

DriveWealth's UCITS ETF offering spans over 500 ETFs from more than 10 leading global issuers, including iShares, Invesco, Amundi, Vanguard, and J.P. Morgan. Coverage is limited to USD-denominated names listed on the London Stock Exchange, which is the most liquid market for this asset class; so every instrument is quoted and traded in US dollars.

How UCITS ETF trading works

UCITS ETFs trade differently from US-listed ETFs and equities on the DriveWealth Platform:

Market-on-Close (MOC) execution. All UCITS ETF orders are executed at the London market close, regardless of when the order was submitted.
Order window. Orders are accepted from 8:00 AM to 4:00 PM London time (BST), with a cutoff roughly 30 minutes ahead of the close to allow time for order routing and execution.
Whole shares only. Buy and sell orders are available only in whole share quantities; fractional trading is not supported for UCITS ETFs.
Buying power margin. The buying power check for UCITS ETF orders builds in a safety margin against the prior day's close, since the current day's execution price isn't known until after the market close.
Previous close pricing. Prior close pricing is published for every available instrument, so clients always have a reference price while an order is outstanding.

DriveWealth's role

DriveWealth does not execute or custody UCITS ETF trades directly. When a client submits a UCITS ETF order, DriveWealth passes the instruction to its third-party vendor, which can use a broker to source liquidity, execute the order, and custody the assets. They will provide the transaction details back to DriveWealth for trade confirmations and account statements.

Risks and other considerations

Jurisdictional limitations. UCITS ETFs are unavailable to U.S. persons on the DriveWealth Platform.
Currency risk. Where a client's home currency differs from the fund's currency, returns can be affected by exchange rate fluctuations.
Liquidity risk. Some UCITS ETFs are thinly traded, which can make it harder to transact at a desired price.
Derivative and leverage risk. Certain UCITS ETFs use derivatives to meet their investment objective, which can amplify gains or losses.
Regulatory cost. UCITS compliance requirements can add cost and may limit a fund's ability to take advantage of certain market conditions.
Fund documents. Clients should review the fund's prospectus, KID before investing; DriveWealth does not warrant the accuracy or completeness of third-party fund documentation.

Order Placement

Opens a new long position by purchasing a UCITS ETF

curl --request POST \
     --url https://bo-api.drivewealth.io/back-office/orders \
     --header 'accept: application/json' \
     --header 'authorization: Bearer {{ACCESS_TOKEN}}' \
     --header 'content-type: application/json' \
     --header 'dw-client-app-key: {{yourAppKey}}' \
     --data '{
  "accountNo": "DWPT000003",
  "orderType": "MARKET_ON_CLOSE",
  "symbol": "FLOA.LN",
  "side": "BUY",
  "quantity": 2,
  "currency": "USD"
}'