Indexchange Investment has launched 14 sector ETFs as well as introduce a savings plan on ETFs with ...
Indexchange Investment has launched 14 sector ETFs as well as introduce a savings plan on ETFs with DAB-Bank.
The 14 sector funds will be listed on the XTF-Segment of the German Stock Exchange and will mirror the STOXX 600 sectors.
This includes automobiles, basic resources, chemicals, construction, cyclical goods and services, energy, financial services, food and beverage, industrial goods and services, insurance, media, non-cyclical goods and services, retail and utilities.
Andreas Fehrenbach, spokes- person for Indexchange, said: 'Due to the high correlation of country indices, many investors are switching from a country oriented allocation to a pan-European sector-oriented investment.
'The Indexchange sector funds offer investors the option to realise a European investment strategy individually and in an easy manner.
'The funds represent a perfect vehicle for experienced investors to underweight or overweight individual sectors as opposed to the entire market. And that is without having to fall back on riskier single investments.'
Annual administration fees of 0.5% are invoiced for the funds. These fees cover all the costs of the funds. No issue premium is incurred during stock trading.
Indexchange in co-operation with DAB-Bank is also offering a savings plan of the ETFs. Products this will include are: DAX EX, MDAX EX, NEMAX 50 EX, Dow Jones STOXX 50 EX, Dow Jones EURO STOXX 50 EX, Dow Jones Global Titans 50 EX and Dow Jones Industrial Average EX.
Fehrenbach added: 'The index funds are particularly suitable in the savings model section, as they often produce a better performance than actively managed products when compared in the long term.'
The DAB-Bank is offering its clients savings plans with an issue surcharge reduced to 2.5%.
Savings plans can be established from an investment amount starting from as little as E50. The custodianship account for the savings plan is offered free of charge.
Fehrenbach said: 'With low investment amounts, the investor is better-off through an issue premium than an acquisition through the stock market. Therefore, we decided to offer savings plans in a manner that is not typical for ETFs.'
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