5Mes·

Good morning everyone,

As an InvestRookie, I'm sure you can answer my questions.

In the forest of ETFs it is a bit confusing at first because there are so many.

Let me give you an example

$SMEA (-0,02%)
iShares Core Europe ETF (TER 0.12% - Accumulating)

$XEOU (+0,17%)
Xtrackers MSCI Europe ETF (TER 0.3% - Accumulating)

$XIEE (-0,05%)
Xtrackers MSCI Europe ETF (TER 0.12% - Distributing)


I realize everyone has a different investment strategy but why are there so many of the same ETFs even though they all seem to hold the same stocks?


I should do some research on YT.


Forgive my ignorance, but Sesame Street has already sung [...] "if you don't ask, you stay stupid"


Thanks for your feedback

4 Commenti

immagine del profilo
The providers want to earn money.

It's the same as with cola - the drink has been around for over 100 years, the "original" is very successful and yet there is always global and regional competition.
2
immagine del profilo
The first is an ETF from Blackrock, the second from Xtrackers. One of the two from Xtrackers is accumulating, the other is distributing. That makes three different products, doesn't it?
1
immagine del profilo
@GreenWash That's right, that's why I wrote it down directly. Is there a reason why the iShares has a fee of 0.12% p.a. and the Xtrackers a fee of 0.3% p.a.?
Doesn't it make sense to simply invest in the iShares?
immagine del profilo
@InvestRookie Yes, the TER of the iShares is cheaper. You could look at the tracking difference, e.g. for extra ETFs, because the xtTackers may still have the better performance.
There are simply different providers that track an index and then pay license fees, in this case to MSCI. And the different TER shows that this is good for competition.
1
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