ETFs in focus: This is how investors benefit from the DAX expansion!

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Find out everything about ETFs, providers, investment strategies and the best tips for sustainable wealth creation.

Erfahren Sie alles über ETFs, Anbieter, Anlagestrategien und die besten Tipps für nachhaltigen Vermögensaufbau.
Find out everything about ETFs, providers, investment strategies and the best tips for sustainable wealth creation.

ETFs in focus: This is how investors benefit from the DAX expansion!

On January 16, 2025, the exchange traded funds (ETFs) market is in strong investor focus. The providers of financial products and ETFs include renowned names such as DWS, Xtrackers, Amundi, BlackRock/iShares, Vanguard and many more. These companies offer a variety of ETFs that track various benchmarks, including DAX, EuroStoxx50, MDAX, MSCI Emerging Markets, S&P 500, Nasdaq 100 and Nikkei 225.

ETFs cover numerous asset classes, including stock indices, alternative investments, money market, real estate, bonds, foreign exchange and commodities. These products are available in different currencies such as AUD, CAD, CHF, CNY, EUR, GBP, HKD, JPY, MXN, NZD, SEK, SGD, and USD. Investors can also choose from various volume categories and total expense ratio (TER) categories, ranging from up to 0.15% to over 0.75%. The distribution types are either accumulating or distributing and the strategies are both long and short strategies.

Advantages of ETFs for investors

ETFs are particularly suitable for long-term wealth creation because they track a stock index and are less affected by price fluctuations of individual companies. In addition, choosing the right portfolio, for example with cheap online brokers such as Trade Republic or Scalable Capital, is seen as crucial for the return. These financial products enable diversification, thereby reducing risk for investors.

A well-known global index is the MSCI World, which tracks over 1,600 companies from around the world. The advantages of ETFs continue to be their passive management, lower management costs and high transparency. Statistics show that actively managed funds often do not outperform the market, making ETFs an attractive option for investors looking to build long-term wealth - especially for retirement.

There are a few important steps for buying ETFs: First, a depot should be chosen and money transferred. Investors can then search for and purchase the ETF they want. ETF savings plans offer the opportunity to invest regularly from an amount of 25 euros and allow flexibility without order fees for certain periods. The cost structure of an ETF is typically between 0.2 and 0.5 percent, making them extremely competitive compared to active funds with higher ongoing costs of around 1.5 percent. Investors should also pay attention to the tax aspects, as ETFs are taxed according to the withholding tax.