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ETF DBX USA

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Mark5
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ETF DBX USA

Good day all

Are you all aware that SYGNIA has bought DBX,I cannot remember who had it previously but we are NOW being charged an ETF fee which never happened before, I received dividends of R3773 and they took off a fee of R1585. This is daylight robbery? 

This is besides the foreign tax of R555, therefore I only made a profit of R877. I feel like selling all my DBX shares as a fee was never charged before. Any comments.

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Mark5
Solution
New Contributor

Re: ETF DBX USA

Added comments,ETF DBX USA it's more than 42% of the dividend,this cannot be correct, I would like standard bank to provide answers in detail how this is derived.

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Frequent Contributor

Re: ETF DBX USA

Now you know why they are called "trackers"( chuckle) - beause after management charges they lag the index or other model they are tracking ! the administrator if that's what we can call them recover their fee for running these from the income earned  - thus the deduction - but its pointless asking Standard Bank anything - they are not the issuer/ administrator /whatever : you would be better asking  Sygnia - who as I understand it bought them from Deutsche Bank ( more 's the pity  - unless this new lot bring the fees down?) - but that I know zip about as they Sygnia have said nothing - at least nothing that i am aware of.  I did ask if there was any possiblity of a DTA recovery of tax - but that would be messy given the spread of the shares.    

Anyway you are better off not recieving divvies if you are in a maximum tax bracket as things stand - better if this lot made no distrbutions and these funds simply issued more units and one just paid CGT - assuming you are an investor  - ie when you sold.

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Mark5
New Contributor

Re: ETF DBX USA

Thanks Partridge1, I am going to phone SYGNIA,it would be different if I was using their platform and advice to justify the rip off, do you have these DBX trackers and if so what are you going to do about them. Do any other investors have any solutions? I used to be with SATRIX when I first started investing and then switched to ETFSA, going to check if their fees are any different.

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Valued Contributor

Re: ETF DBX USA

you have always been charged the fee and the SENS announcements have detailed it for a while now.

 

Here's what I wrote on this for FinWeek;

No, the ETF owners are not ripping you off

 

tl:dr

The fee is perfectly in line with the stated TER.

 

Simon

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Frequent Contributor

Re: ETF DBX USA

Simon

Thanks for your summary - I figured out we were paying a TER of about 0.6ish - which I think is still steep - should be lower and closer to what you would expect in an institutional pricing model which I bet would be about 0.50 after all this is hardly "client intensive stuff "- they only ever issue distribution statements of buying or selling more units so dropping the price would be a help  - even 0.15 less over time would be a great help to Joe public..

So this raises the next question - who really wants the divvies - would it not be more tax efficient for the holder if they simply issued further "units" and forgot about paying divvies or set up a tracker which did that ?  Then you choose when to pay your tax

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Valued Contributor

Re: ETF DBX USA

or just buy the new Satrix SP500 or MSCI dev markets both have lower TERs and SP500 pretty much same as DBXUS and MSCI is same for both ..

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Frequent Contributor

Re: ETF DBX USA

Simon, useful points thank you.

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Frequent Contributor

Re: SATRIX500

3.7 Distribution or accounting period

    No distributions as the index in a total return index. Therefore
    the coupons of the underlying bonds are reinvested.

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EkisDoep1
Occasional Contributor

Re: ETF DBX USA

Simon,

After the switch to Sygnia the new profit/loss figures are all different. Like the SYGWD is now more than the old DBXWD was yesterday and the SYGUS is much less than the DBXUS was yesterday. Even the SYGUK is different from what the DBXUK was yesterday. Please explain.

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EkisDoep1
Occasional Contributor

Re: ETF DBX USA

Ok. It seems that it was just the slow updating of data on the standard online package that I use, not live all the time. It is much better now. Almost similar.

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