Competition to host exchange-traded funds has been heating up between Luxembourg and Ireland, with both offering attractive investment perks.
ADVERTISEMENTAmundi, one of Europe’s largest asset managers, has relocated another of its exchange-traded funds (ETFs) from Luxembourg to Ireland.
“This move of fund domicile, which is technically a fund merger, means that the investors will receive an improved performance in the long term with an unchanged exposure,” an Amundi spokesperson said.
The fund in question, with total assets of €6.7bn, was Amundi’s third-largest fund domiciled in Luxembourg.
The announcement doesn’t mark a new step for the firm, which previously moved seven ETFs from Luxembourg to Ireland in 2013, worth €12.3bn.
Commenting on the decision, Amundi said that “Ireland offers significant advantages for ETFs investing in US equities, primarily due to reduced withholding tax on dividends”.
“This means that investors benefit from higher net returns in the long term,” the spokesperson added.
ETFs domiciled in Ireland notably only pay 15% withholding tax on US dividends, while those based in Luxembourg pay 30%.
Ireland is gaining market share
Ireland and Luxembourg are the two most popular European domiciles for ETFs, although Ireland has gradually been gaining on its competitor.
“The market has shown a clear preference for Ireland when launching active ETFs, which are expected to drive growth in new ETF launches in the coming years,” Kenneth Lamont, principal Morningstar analyst, told Euronews.
Ireland was home to €1.6tn of ETF assets at the start of 2025, while Luxembourg housed €387bn, according to Morningstar data.
Looking at market share in Europe, Ireland accounts for around 70%, while Luxembourg accounts for 18%.
Winning over investors
The smaller country has nonetheless been “fighting back,” Lamont said.
Luxembourg’s financial regulator was notably the first European country to “permit semi-transparent ETFs”, while “the first tokenised UCITS fund is set to launch in the region soon too”, he explained.
Semi-transparent ETF rules allow managers to be more secretive about funds, which can help to protect investors from competitors.
A tokenized UCITS fund is a type of investment vehicle that uses blockchain technology to show ownership through digital tokens.
ADVERTISEMENTAmundi also announced on Friday that it had listed 11 ETFs on the London Stock Exchange, which it said “reaffirmed its commitment to the UK market”.