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Funds at ZFB Services
Exchange Traded Funds (ETFs) are financial
instruments that provide the diversity of a mutual investment fund but
that are traded on a stock exchange. 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.
The trading 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 the 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.
Fees
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 fund
manager who uses specific strategies to beat the market indices, thus
resulting in superior returns for the fund.
ZFB Services's trading 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.
Fees
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.
