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Interesting! I stumbled across the following part: The report states "German investors continue their divestment from the DAX [...] DWS Investment was the bigg
by chrisma0 5y ago
Interesting! I stumbled across the following part:
The report states "German investors continue their divestment from the DAX [...] DWS Investment was the biggest domestic seller, followed by BlackRock Asset Management (Deutschland)" and "North American investment continued to grow [...] mainly driven by Vanguard".
If a German citizen sells a BlackRock ETF and switches to Vanguard (e.g. due to lower TER), would that reflect in the report as "German divestment from the DAX"?
- krit_dms 5y agoNo. The ETF holdings are masked behind the provider of the ETF. SO in your case, the holdings remain unchanged.
- imtringued 5y agoWhy would Germans want to buy foreign ETFs and why would foreign providers not want to create a domestic ETF for Germans? Trading € to $ and back isn't very logical.
- nly 5y agoWhile currency hedging is cheap in a 0% rate world, hedged ETFs tend to have higher fees. Paying ~0.5% on forex on both ends is better than paying 0.25%/year more over long holding periods. There's also much less choice when it comes to hedged ETFs. The other thing is, you want to diversify geographically to protect you against weakness in your home economy, and when that happens the strength of your home currency tends to fall off. Hedging your currency risk is exactly what you don't want in that scenario.
- 2ion 5y agoIt's been done in parts, for example Blackrock has both DE000A0F5UF5 and IE00B53SZB19 on the NASDAQ100, but after looking at liquidity/volume and performance data, few of the special-made DE ETF actually make significant sense to buy.