exchange-traded index funds (ETFs) are the financial product of the hour: a transparent, cheap, easy to use. The offer grows and grows. How to keep investors because of the view?
Berlin (dpa/tmn) - MSCI World, Euro Stoxx 600, Dax, S&P 500, Nikkei: The range of stock market indices has become large. For investors, this is good and bad at the same time.
Well, it is because indices are the basis for a simple, transparent and cost-effective financial products: exchange-traded Fund, or ETF. Bad it is, because the ETF is now almost too big. In Germany alone, according to the Foundation's test were quoted around 1400 ETF on the stock exchange. How to find a private investor since just cope?
"you have to ask yourself the question: What do I want to have for an ETF?", Prof. Ingrid Grössl, Chair and research Director of the Institute for financial services (iff) in Hamburg says. This requires that investors have to deal with the Index, the ETF maps and a few questions to clarify.
The first question is: How many values are in the Index clustered?
"is the wider the Index, the lower the risk that individual values can provide for greater setbacks," explains Prof. Grössl. Therefore, an Index, and the corresponding ETFs with 50 values, is riskier than an Index with 500 values.
only the number of titles should be large. The Index should include multiple countries and industries. Here is the MSCI World index is often taken as a benchmark. It comprises the shares of approximately 1600 companies from several countries. Even more broadly, the MSCI All Country World, which also contains shares of companies from emerging countries.
"An ETF Portfolio can be constructed in principle as a house," advises Thomas may, by the Verbraucherzentrale Bremen. "The foundations of the really wide, world's stray Fund, and, based on that you can be up up to the roof, which is always special." The base system could be complemented with ETFs on the MSCI World or MSCI All Country World emerging markets indices such as the MSCI Emerging Markets. As a further addition, individual countries, sectors or strategies, such as dividend ETF's may be mixed.
The second question: What is an ETF costs?
Basically, index funds are far cheaper than managed products. "But even here, there are some differences," says Jürgen Kurz from the German protection Association for securities holding (DSW), Düsseldorf, Germany. The range is 0.1 to 0.5 percent. This is not a lot of power over longer periods of time, but with a difference.
For the purchase of an ETF, investors need a securities account. Most Depots are Online cheaper. IShares, Xtrackers, or Lyxor: is bought In which the provider of the ETF, then at the end, from the point of view of Short-time matter. "For the major indices, there are multiple providers."
The third question is: what is the structure of the ETF?
"most of The index funds hold the stocks that are included in the respective Index," explains Short. This principle experts call physical replica. Another variant is that the value of the Index on other financial transactions - so - called derivatives-to. It's called a synthetic replica. From the point of view of the investor protector such transactions are questionable.
Important in any case: "you have to deal with their risk appetite apart," advises Prof. Grössl. Who needs the bad times to the money, you must also realize loss then. "Your investment horizon should therefore be at least ten years."
literature:
"guide investing Money -stocks, funds, bonds, fixed Deposit, Gold and co.", Stiftung Warentest 2018, 416 pages, ISBN: 978-3-86851-281-6, 39,90 Euro.
"Create with ETF money investing with ETF and index Fund", Stiftung Warentest 2018, 176 pages, ISBN: 978-3-86851-295-3, 19,90 euros.
information about the Index Industry Association (English)
news of the Foundation goods test over ETF (partly subject to charge)
Date Of Update: 26 June 2019, 12:00
