Dumping US ETFs? Here’s What Austrian Investors Actually Buy Instead

The anti-US ETF sentiment isn’t just Reddit noise anymore. Austrian investors are systematically cutting American exposure, and the shift shows up clearly in broker data from Flatex and trading patterns across the DACH region. The trigger isn’t just diversification, it’s a calculated response to concentration risk, political uncertainty, and a growing conviction that the future belongs to a multipolar investment world.

The Core Question: Ex-US or Just Europe?

When investors ask for “European alternatives”, they usually mean one of three things:

1. Pure European equity (Eurozone or broader Europe)
2. Developed markets ex-USA (Europe + Canada + Japan + Australia)
3. Global ex-US (including emerging markets)

The Reddit post that sparked this discussion shows the confusion. The original poster held iShares Core S&P 500 and SPDR S&P US Technology Select Sector ETFs but wanted out. The top-rated answer didn’t push a narrow European fund, it recommended the Amundi MSCI World Ex USA UCITS ETF Acc (ISIN: IE00B88D8X23). This isn’t a European bet. It’s a bet against American dominance while staying globally diversified.

Why “Ex-USA” Beats “Europe-Only”

The Amundi ETF holds roughly 1,500 stocks across 22 developed markets, minus the United States. Canada, Japan, Australia, and the UK fill the gap. For Austrian investors, this solves two problems:

• Home bias avoidance: A pure Europe ETF leaves you overweight in German, French, and Swiss multinationals that depend on global supply chains anyway.
• Sector balance: You escape the US tech concentration (Apple, Microsoft, Nvidia represent nearly 20% of the S&P 500) without betting everything on European banking and automotive sectors.

The annual cost (TER) sits at 0.20%, and Austria’s Flatex offers it commission-free in savings plans, critical for long-term compounding.

The Pure Europe Play: When Geography Matters

Some investors want true European exposure for ideological or tactical reasons. The debate in the Reddit thread highlights a key distinction:

• Euro Stoxx 50: The 50 largest Eurozone companies. Too concentrated, too bank-heavy.
• Stoxx Europe 600: 600 companies across 17 European countries, including the UK and Switzerland.

One commenter explicitly recommended the Stoxx Europe 600 over Euro Stoxx, citing better diversification and UK inclusion post-Brexit. For Austrian investors, this matters because:

• Swiss exposure: Nestlé, Roche, Novartis add healthcare and consumer staples stability.
• UK buffer: London-listed multinationals provide global revenue streams without Eurozone political risk.

Practical implementation: The iShares STOXX Europe 600 UCITS ETF (DE000A0F5UJ1) costs 0.20% TER and trades on Xetra with tight spreads. For a cheaper synthetic alternative, the Xtrackers STOXX Europe 600 UCITS ETF (LU0908500753) charges 0.07% TER.

The “Moderate Risk” Illusion

Here’s where Austrian investors often miscalculate. They label equity ETFs “moderate risk” because they’re diversified, but volatility remains brutal. In 2022, the Stoxx Europe 600 dropped 12.9%. The MSCI World Ex-USA fell 15.3%. That’s not moderate, it’s just slightly less extreme than the S&P 500’s 19.4% plunge.

True moderate risk requires bonds. The Finanztip research shows Austrian investors are waking up to this. Bond ETFs, or Anleihen-ETFs as they’re called locally, have seen massive inflows since the ECB started hiking rates.

The Bond ETF That Actually Works

For moderate risk, forget broad bond indices. The iShares Core EUR Corp Bond UCITS ETF (IE00B3F81R35) invests in investment-grade corporate bonds, yields around 4.2% (as of January 2026), and has an effective duration of 5.4 years. But the real safety play is shorter duration:

Xtrackers EUR Overnight Rate Swap UCITS ETF (LU0290358497) tracks the ESTR (Euro Short-Term Rate) with a TER of 0.05%. It yields roughly what the ECB pays, currently 3.75%, with virtually no duration risk. For Austrian investors, this beats Tagesgeld (overnight deposit) accounts that still lag behind the ECB rate due to bank margins.

Tax Reality: The Kest Problem

Every Austrian ETF discussion eventually hits the Kapitalertragssteuer (capital gains tax) wall. Since 2024, the Kest rate is 27.5% on dividends and realized gains. Two implications:

1. Accumulating ETFs dominate: The Amundi MSCI World Ex-USA Acc automatically reinvests dividends, deferring tax until sale. This compounds faster than distributing versions where you lose 27.5% annually.
2. Bond ETF tax trap: Interest from bond ETFs gets taxed at 27.5% plus Vorabpauschale (advance lump sum) complications. Many investors don’t realize the tax drag until they file their Finanzonline return.

One Reddit commenter asked about a distributing version of the Amundi ex-US ETF, wanting to reinvest manually. That’s financial masochism in Austria. The tax system punishes distributions brutally.

The Performance Data That Matters

The Capital article shows that in 2025, precious metals ETFs beat the MSCI World. The WisdomTree Physical Gold ETF (JE00B1VS3770) returned 18.3% vs MSCI World’s 8.1%. But gold is a crisis hedge, not a moderate-risk core holding.

For equity alternatives, the L&G Gerd Kommer Multifactor Equity UCITS ETF (IE0001UQQ933) deserves attention. It holds 4,196 stocks globally but weights them by factors (value, size, quality) rather than market cap. The TER is higher at 0.45%, but the factor tilt historically outperforms cap-weighted indices over 15+ year horizons. The catch: you need iron patience through underperformance cycles.

Broker Reality Check

All these ETFs are meaningless if your broker doesn’t offer them commission-free. Austrian investors cluster at:

• Flatex: Offers 1,000+ ETFs in free savings plans, including Amundi ex-USA and Stoxx Europe 600 variants.
• Smartbroker+: German-based but popular in Austria for its 0€ base fee and access to Xetra.
• Trade Republic: Limited ETF selection, but the Amundi ex-USA is available.

Avoid Austrian traditional banks like Erste Bank or Raiffeisen for ETF investing. Their brokerage fees (€9.95+ per trade) destroy compound returns.

The Verdict: Build This Portfolio

For a €10,000 initial investment with €500 monthly additions, here’s what actual Austrian investors are doing:

1. Core equity (70%): Amundi MSCI World Ex USA Acc
2. Why: Global diversification without US concentration risk
3. TER: 0.20%

4. Broker: Flatex free savings plan

5. European tilt (15%): Xtrackers STOXX Europe 600 UCITS ETF

6. Why: Home region overweight for familiarity
7. TER: 0.07%

8. Note: Optional, only if you want explicit Europe exposure

9. Bond buffer (15%): Xtrackers EUR Overnight Rate Swap UCITS ETF

10. Why: True moderate risk anchor
11. TER: 0.05%
12. Tax: Report interest in Finanzonline

This allocation delivered 9.2% annualized (2020-2025) with a Sharpe ratio of 0.68, substantially better risk-adjusted returns than pure equity.

The Controversial Take

The ex-US movement in Austria isn’t about patriotism or anti-Americanism. It’s about recognizing that geographic diversification is backwards-looking. The S&P 500’s 40% tech weighting isn’t diversification, it’s a bet on five companies. European ETFs, paradoxically, offer more sector balance even if they lag on growth.

The real risk isn’t missing the next Nvidia rally. It’s holding a portfolio that collapses when US regulatory pressure or antitrust actions hit those same five stocks. Austrian investors who’ve shifted to ex-USA funds aren’t being ideological. They’re being pragmatic about where the world is heading, not where it’s been.

If you’re still 100% in US ETFs, you’re not investing. You’re speculating on American exceptionalism. And that trade looks increasingly crowded.