Investing glossary
UCITS
UCITS is the European regulatory framework that harmonizes investment funds and ETFs sold to retail investors across the EU, with common rules on diversification, liquidity and disclosure.
A UCITS fund must meet strict diversification limits (for example, it cannot over-concentrate in a single issuer), offer reasonable liquidity and publish a KID with its key information.
The vast majority of ETFs and index funds sold to retail investors in Spain and Europe are UCITS: it is practically a stamp confirming the product meets minimum investor-protection standards, though it does not eliminate market risk.