After New Regulations, Here’s How Canadians In Europe Can Build A Portfolio Of ETFs

In January 2018, a new European Union regulation rattled plenty of Canadian expats living in Europe.

Many had built diversified portfolios of low-cost ETFs.

They had taken such advice from multiple Nobel Prize winners in economics.

Warren Buffett is among the strategy’s supporters.

In fact, that’s how his personal estate (on behalf of his heirs) will be invested when he dies. He’s putting his money in a portfolio of low-cost index funds.

But EU regulators now say European residents can’t buy ETFs from the Toronto or the New York Stock Exchanges.

That doesn’t mean they can’t follow Buffett’s advice.

I’ll explain how they can.

Image by Pixabay

Click here to read how


wealthbar special deal for andrew hallam readers

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

You may also like...

2 Responses

  1. Sara Macmillan says:

    Hi Andrew,

    Thank you so much for this article! My husband and I are expat Canadians who have read your books and followed your advice. The difficulty in investing in North American markets has been frustrating. We are using Internaxx as our broker, and we have been investing in Vanguard on the UK market. The Global Nomad portfolio you suggest in this article sounds perfect for us – but we need to readjust our investments. We are currently invested in:

    VDMO -Vanguard Funds PLC Global Momentum Factor USD

    VDCP – Vanguard USD corporate Bond UCITS ETF

    VDEM – Vanguard PLC FTSE Emerging Markers USD

    and

    VUSA – Vanguard S&P 500 UCITS ETF (because we are paid on USD)

    As we don’t know where we will retire, should we drop VUSA and concentrate more on the Global? Are the Vanguard choices okay?

    Thank you for your advice!

    Sara

    • Hi Sara,

      Your current portfolio will have high U.S. stock exposure. As such, you would be taking global market capitalization risk (the global index is allocated 50% to US stocks). In addition, your bonds would represent U.S. dollars too, instead of a more diversified allocation, so I recommend going international, as per my model, on that one. If you might retire in Canada, adding the Canadian stock index makes sense too.

      Cheers,
      Andrew


  2. internaxx special deal for andrew hallam readers

Leave a Reply

By commenting you confirm you have read and that you agree to the conditions set out on the Legal Page, including the Privacy Policy, and Comments PolicyFor your privacy we strongly recommend you do not use your real name. Your email address will not be published but it may show your photo or recognizable image -- if associated with gravatar.com or similar website. It is strongly suggest you do not use a corporate or school email address. We reserve the right not to publish comments that do not meet guidelines. Published comments will not be deleted.