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Impact of a U.S.-EU Conflict on European ETFs: Could Trading Be Disrupted?
I’m an european. Let’s assume a scenario of total hostility between the EU and the U.S. (e.g., a complete severance of relations and potential open war). Now, let’s imagine that I used IBKR IE to buy VWCE on XETRA. The broker is based in Europe, the exchange is European, the bank holding the ETF’s assets is an Irish entity, but some of the ETF’s underlying assets are American (e.g., Nvidia, Microsoft) and traded on the NYSE and NASDAQ. Does this mean that the ETF issuer would no longer be able to trade these stocks? In other words, would the ETF lose its ability to track the underlying index?