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Besides size and volatily (dissolution, mergers of ETF generating unfavourable tax events), most ETF by European providers are swap-based. This means that they
by 2ion 5y ago
Besides size and volatily (dissolution, mergers of ETF generating unfavourable tax events), most ETF by European providers are swap-based. This means that they are cheaper/slightly better performing according to their swap risk premium, but some folks they like to stick with non-swap ETF. Finally, age --- Blackrock, Invesco etc have some of the largest and oldest ETF in the Euroepan/German market on some of the most desireable indices, and so it comes that people might not think of collecting 10 ETF on the same index but stick with one, esp. since for tax optimisation, FIFO purchase/sell order can be circumvented by collecting the same security in distinct depots.
- ivanche 5y agoWhile it's true that a lot of ETFs available in Europe are swap-based, I think it's not "most". According to [1], there are 798 ETFs using full replication, 510 using sampling and 327 are swap-based. [1] https://www.justetf.com/de-en/find-etf.html?groupField=none&sortField=ter&sortOrder=asc https://www.justetf.com/de-en/find-etf.html?groupField=none&...
- allendoerfer 5y ago> Besides size and volatily (dissolution, mergers of ETF generating unfavourable tax events), most ETF by European providers are swap-based. The older ones are swap-based, the new ones are not. iShares has the biggest offering. Lyxor and Xtrackers are often cheaper for very popular indices. Vanguard is just entering the market. I think it is a very healthy competition and TERs are constantly going down.