ETFs

Exchange Traded Funds (ETFs) are financial instruments that provide the diversity of a mutual investment fund (sector, industry or country exposure) but are traded daily on a stock exchange while avoiding the tax implications and high management fees of mutual funds.

ETFs can be based on a variety of stocks and indices, in a wide array of marketplaces, such as the healthcare, telecommunications or transportation industries.

ETFs enable investors to participate in entire markets or indices, but without the fees and administration associated with mutual funds.

ARGUS GLOBAL TRADER platform offers a range of index-tracking and actively managed DWS ETFs.

Index-Tracking ETFs

Index-Tracking or passive ETFs attempt to replicate the performance of  an index. Their passive nature means that the management expenses associated with index-tracking ETFs are quite low, often times lower than those associated with actively managed or mutual funds.

The following fees apply to investments in passively-managed ETFs:

  • Bid/Ask spread: Fund units are bought and sold on a spread between the Bid and Ask price as the market dictates.
  • Management Fee: An annual management fee is charged for each ETF.
  • Depository Fee: The platform does not charge an annual depository fee for ETFs.

Actively-Managed ETFs

Actively-managed ETFs are funds managed by a fund manager who uses specific strategies to beat the market indices, thus resulting in superior returns for the fund.

ARGUS GLOBAL TRADER platform offers a selection of DWS (Deutsche Bank) actively managed ETFs, including funds based on various sectors in the Dow Jones index, as well as diversified investments in country-specific markets, such as China and India.

The following fees apply to investments in actively-managed ETFs:

  • Bid/Ask spread: Fund units are bought and sold on a spread between the Bid and Ask price as the market dictates.
  • Management Fee: An annual management fee of between 1.45% and 2.0%, is charged for each fund, as described in the data sheet for the fund.
  • Performance Fee: A performance fee is charged for each fund. DWS charges a performance fee of up to 25% of the amount by which the fund has exceeded the relevant benchmark, calculated daily and deducted annually. DWS can also charge performance fees if the fund fails to make a profit, if the comparison to the benchmark index is positive.