In short: The Key Information Document (KID) is a standardised three-page document required by European Union law for retail investment products, including ETFs. It describes the fund’s investment objective, risk rating on a scale from 1 to 7, performance scenarios, ongoing costs, and holding periods, allowing clear comparison before investing.
Why the KID exists and what the PRIIPs rules require
When investing in exchange-traded funds in Europe, you regularly encounter the Key Information Document (KID). This document was established by the European Union under Regulation (EU) No 1286/2014, known as the PRIIPs Regulation (Packaged Retail and Insurance-based Investment Products).
The core objective of the regulation is to ensure that retail investors receive clear, comparable, and reliable information before committing money to an investment. To accomplish this, the law sets strict structural requirements:
- Pre-contractual timing: The KID is a pre-contractual document that must be accurate, fair, clear, and not misleading. A seller or investment adviser must provide it to you in good time before you are bound by an order or contract.
- Stand-alone: The KID must be a stand-alone document. The Vanguard KID itself says: “It is not marketing material.”
- Page limit: When printed, the document may take up a maximum of three sides of A4-sized paper.
- Plain language: The KID must be written in clear, succinct and comprehensible language, according to the ESAs’ Questions and Answers.
- Language: In the Netherlands the AFM states that the Eid, the Dutch name for the KID, must be issued in Dutch. In Dutch the document is called the Essentiële-informatiedocument (Eid).
From UCITS KIID to PRIIPs KID: what changed in 2023
Before 2023, European UCITS index funds provided a Key Investor Information Document (KIID) under the older UCITS Directive framework. European lawmakers initially granted UCITS funds a temporary exemption from the PRIIPs framework, but that exemption officially ended on 31 December 2022.
From 1 January 2023, UCITS offered to retail investors must have a PRIIPs KID (Eid) instead of the UCITS KIID, according to the AFM. The KID shows transaction costs separately in its cost table.
Standard sections of a KID in fixed order
Under Article 8 of the PRIIPs Regulation and the delegated technical standards, every KID follows an identical heading hierarchy. An example, such as the English-language KID for the Vanguard FTSE All-World UCITS ETF (accumulating share class, ISIN IE00BK5BQT80, checked September 2026), illustrates this fixed layout:
- Purpose: A mandatory standard paragraph explaining that the document provides key information, is not marketing material, and is required by law to help you understand the nature, risks, costs, and potential gains and losses of the product.
- Product: Details the fund and share class name, the manufacturer (fund manager), its ISIN code, the competent supervisory authority (such as the Central Bank of Ireland or the CSSF in Luxembourg), and the production or revision date of the document.
- What is this product?: Describes the legal type of the fund, the investment objective, the underlying benchmark index, the intended retail investor profile, and any maturity term.
- What are the risks and what could I get in return?: Displays the graphical Summary Risk Indicator (SRI) on a scale from 1 to 7, explains market and currency risks, and presents four calculated performance scenarios.
- What happens if the manufacturer is unable to pay out?: Explains what occurs if the fund management company defaults, highlighting the role of the custodian or depositary in holding fund assets in a segregated account, and whether any compensation or guarantee scheme applies.
- What are the costs?: Contains two standard tables: “Costs over time” showing the compounding effect of total costs, and “Composition of costs” detailing one-off charges, ongoing management fees, and internal portfolio transaction costs.
- How long should I hold it and can I take money out early?: Names the recommended holding period (such as 5 years), explains the rationale, and outlines the practical consequences or costs of exiting the position early.
- How can I complain?: Provides contact details and instructions for lodging formal complaints with the fund manufacturer and information on distributor escalation.
- Other relevant information?: Links to additional documents, such as the full prospectus, annual reports, and past performance records.
How to read the risk indicator and performance scenarios
The risk section contains two specific elements designed by European regulators: the Summary Risk Indicator and four scenario projections.
The Summary Risk Indicator (SRI) uses a numerical scale from 1 to 7, where 1 indicates lower risk and 7 indicates higher risk. The Vanguard KID explains the risk as how likely it is that the fund will lose money because of movements in the markets or because the manufacturer is unable to pay you. If a fund holds securities in currencies other than your own, exchange rate movements can also affect the return, as the KID narrative notes.
Under the indicator, the document displays four performance scenarios: a stress scenario, an unfavourable scenario, a moderate scenario, and a favourable scenario. The Vanguard KID describes them as illustrations built from the past performance of the fund and a benchmark over the last 10 years.
Investing involves risk of loss. The figures presented by this calculator are for illustrative purposes only and do not constitute financial advice. Past performance does not guarantee future results.
It is crucial to recognize that performance scenarios are regulatory illustrations, not return forecasts or guarantees. European financial supervisory authorities have explicitly warned that future market developments cannot be accurately predicted, and actual real-world returns can turn out significantly lower than the outcomes illustrated in the document.
Understanding the cost disclosures
Cost disclosures in the KID are split into two complementary presentations:
- Costs over time: Illustrates the cumulative monetary impact and annual percentage reduction in yield caused by all fund charges if you cash in after 1 year and at the end of the recommended holding period.
- Composition of costs: Details entry and exit costs, ongoing costs (for this fund, the TER of 0.14% and shown separately the internal transaction costs incurred when buying or selling underlying assets), and incidental costs such as performance fees. The Vanguard KID states that the fund does not charge an entry fee, an exit fee or a performance fee; the person selling you the fund may charge their own costs.
The KID shows the fund’s own costs. The Vanguard KID says the person advising on or selling you the fund may charge other costs, and will provide you with information about them. Check your broker’s tariff for those.
Differences between a KID and a fund factsheet
Both the KID and the monthly factsheet provide fund information, but they serve different legal purposes:
| Feature | Key Information Document (KID) | Fund factsheet |
|---|---|---|
| Legal status | Mandatory EU pre-contractual document | Marketing communication (Vanguard factsheet) |
| Page length | Maximum 3 sides of A4 paper | Set by the issuer (the Vanguard FTSE All-World factsheet we checked is 4 pages) |
| Standard layout | Strict uniform order defined by law | Marketing layout determined by issuer |
| Risk disclosure | Summary Risk Indicator (scale 1 to 7) | Set by the issuer |
| Cost reporting | Costs over time and full cost composition | Set by the issuer (the Vanguard factsheet shows the Ongoing Charges Figure) |
| Performance | Four regulatory scenarios (no forecasts) | Historical past performance bar charts |
| Delivery timing | Required in good time before purchase | Marketing communication (the Vanguard factsheet states this) |
Where to find the KID before buying
Under Article 5(1) of the PRIIPs Regulation, fund manufacturers are legally required to publish the KID on their official websites. You can locate the document on the fund provider’s portal by searching for the fund’s ISIN code.
Additionally, your bank or online broker is legally obliged to make the document available to you before you execute an order. The document can be provided on paper, on another durable medium, or via an electronic link on the trading platform, depending on the agreed terms of service.
Legislative updates: the Retail Investment Strategy
European policymakers have worked on modernising the PRIIPs framework under the broader Retail Investment Strategy. Negotiations between the Council and the European Parliament led to a provisional political agreement on 18 December 2025, and on 5 June 2026 the Council’s Committee of Permanent Representatives (COREPER) confirmed the compromise text. As of October 2026 the amending regulation has not been published in the Official Journal of the European Union with an application date. Check the current status before relying on this.
Frequently asked questions
What does KID stand for?
KID stands for Key Information Document. In Dutch financial regulation, the Netherlands Authority for the Financial Markets (AFM) refers to this document as the Essentiële-informatiedocument (Eid).
How long is a Key Information Document?
Under Article 6(4) of the PRIIPs Regulation, a KID may not exceed a maximum of three sides of A4-sized paper when printed.
Are performance scenarios in the KID guaranteed returns?
No. The Vanguard KID describes the scenarios as illustrations built from past performance of the fund and a benchmark over the last 10 years. They are not forecasts or guarantees, and realised returns may be lower.
Are broker order fees included in the KID?
No. The KID shows the fund’s own costs. The person selling you the fund may charge other costs and must tell you about them; check your broker’s tariff schedule.
Why did UCITS funds adopt the PRIIPs KID in 2023?
UCITS funds previously used the UCITS KIID. According to the AFM, from 1 January 2023 UCITS offered to retail investors must have a PRIIPs KID (Eid) instead.
Related pages and terms
- How to read a factsheet: practical guide to reading monthly fund updates
- What does an ETF really cost?: detailed breakdown of ongoing charges, spreads, and fee drag
- ETF Calculator: simulate the long-term impact of fund expense ratios on your wealth
- Glossary: KID: reference definition of the Key Information Document
- Glossary: PRIIPs: overview of European packaged retail investment product rules
- Glossary: Risk indicator: explanation of the 1 to 7 risk rating methodology
- Glossary: TER: definition and role of the Total Expense Ratio
Sources
- Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs).
- Commission Delegated Regulation (EU) 2017/653 laying down regulatory technical standards for PRIIPs, as amended by Delegated Regulation (EU) 2021/2268.
- European Supervisory Authorities (ESMA, EIOPA, EBA): Consolidated Questions and Answers on the PRIIPs Key Information Document (JC 2023 22).
- Autoriteit Financiële Markten (AFM): Guidelines and statutory notices on the Essentiële-informatiedocument (Eid) and PRIIPs regulation.
- Vanguard FTSE All-World UCITS ETF (IE00BK5BQT80): Key Information Document dated 29 September 2026.
Facts checked on 20 October 2026.