Why not buy an Index tracking ETF instead? Much lower annual charges (0.20-0.65%) and regular dividends.
With the QL and ES producst the dividends received are reinvested. ETFs do make the best sense for lage sums, however if you wish to invest a small sum regularly i think the index tracker funds have their place, given that commission may eat into any regular premium. Again it's up to the individual to decide what is best for them.
Labuy
Guess you have done all the research that I am just starting so excuse me for picking your brain. How does one go about investing in ETF's stright up without the middlemen taking their pound of flesh? I can never feel comfortable with these 'managers' as I'm sure they still get a wage regardless of performance.
Indeed I have done some research but I certainly don't know all the answers! I haven't for instance been ever able to find out the 'true' expenses of quoted 'passive ' and 'active' funds. This also applies to a lesser extent to ETFs though they tend to be more transparent because they behave more like shares.
Labguy,
The average total expense ratio (annual management charge and other costs) in Europe for an Equity ETF is 0.46%pa compared to 1.91%pa for an average active equity fund.
Source: Morgan Stanley
If anyone is looking for investment advice and has a decent lump sum (about €100k or more) in addition to advice fees, we'd be looking at the following costs for dealing in ETFs in the following markets:
Germany 0.15% Min €15
London 0.15% Min £10
American Exchange 0.15% Min $12
New York Exchange 0.15% Min $12
Nasdaq 0.15% Min $12
Euronext 0.15% Min $15
Singapore 0.18% Min SGX20
Swiss 0.15% Min CHF23
Stockholm 0.25% Min SEK50
If you'd like more information, please private message me.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?