ETFs offer easy entry into global markets.
(Photo: dpa)
Frankfurt Exchange traded index funds (ETFs) have seen an unprecedented triumphant advance. They map an underlying index one-to-one. The pressure of competition in the financial sector is enormous. That is why the TER (Total Expense Ratio), which indicates the total annual costs as a percentage of the volume, has fallen significantly everywhere.
For example, investors in the Dax pay annual fees of 0.08 percent for a low-cost ETF. Other providers charge 0.16 percent.
But how do the differences come about? “That depends, for example, on whether the ETF really buys the stocks contained in the index or only replicates the values indirectly via the futures market, as is the case with synthetic ETFs. It is possible that two ETFs on the same index have different fees, ”says Salome Preiswerk, founder of the online asset management company Whitebox. The amount of the TER also depends on the amount of the fund’s volume.
Read on now
Get access to this and every other article in the
Web and in our app for 4 weeks free of charge.
Further
Read on now
Get access to this and every other article in the
Web and in our app for 6 weeks.
Further