Hello, I would like to invest in the lowest fee EUR stock ETF. I have found Lyxor Core STOXX Europe 600 which has 0,07% TER. If you know about any ETFs with lower TER please let me know.
The absolute cheapest I can find is L&G Europe ex-UK Equity (LGEG). It tracks the Solactive developed Europe Index, so slightly different composition to STOXX
The OCF is 0.10%, but the transactions charges are -0.11% which means the fund is essentially free!
*Information from Interactive Investor research account
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I love Transaction Costs
Negative! Amazing! So they made a profit from the fees involved in trading stock on behalf of the fund! Amazing!
This is always my contention. ‘Explicit’ fees can be nothing but a drain on your fund. You can not pay a fee to trade and it not be deducted from your fund value. Yet ‘implicit’ fees (those that didn’t actually occur but are deemed to have occurred!!!) outweigh the explicit (in this instance) to give an overall negative transaction cost. I understand this. I also understand how this happens and I disagree with the methodology. But my issue is newbies to trading - would they understand this? Does this disclosure actually help anyone when it is so complex and subject to manipulation?
Just my thoughts. Feel free to ignore them. But I’d recommend paying zero attention to Transaction Costs.
Also remember other fees are purely estimates not what you’ll actually pay… so, again, useful to a point but really not worth fixating on
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Thank you both for your input.
I didn’t know that OCF and TER were different things. I should have looked at OCF. I will transfer my funds over to LGEG. Even if fees aren’t everything, they’re something, I as a noob understand as in lower is generally better. If there are more important factors than fees please let me know what it is and what ETF is “best” in that regard.
I just looked up LGEG and it’s in GBX which is currency I don’t own. I think I will loose more funds If I were to buy it due to currency exchange fees.