Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

DB x trackers

Reply
Super Contributor
I am also a buyer into the DB x trackers and we all making just good money. Deutsche Bank currently has issues (though not related) and then questions come up. Firstly are these funds "correctly" priced? The NAV of any DB x tracker is available intra-day given by D/Bank. However, with the "severe" fluctuations in R/$ price every minute or hour, then what buy & sell rate values of exchange do they D/Bank make use of ? Their own values.? I am not sure if the NAV of these trackers ever been tested/checked? Why also the fairly big buy and sell spreads in comparison to other RSA ETF's? When and if ever should the rand recover - what could be the price effect on these funds be? There are so many smart guys on forum whose opinion appreciated.
0 Kudos
Reply
5 REPLIES 5
Regular Contributor
Also waiting for a response on this - thanks
0 Kudos
Reply
Not applicable
and now you have hit the nail on the head, in terms of why I think these things suck. The NAV is purely manufactured by Deutsche Bank themselves, and you have absolutely no way of knowing how they are pegging the exchange rate. They are a bank, so what do you think? A quick comparison for you. DBXWD has - since august 2013, returned 71%. But the Rand devaluation contributed 55% of that growth - so in real terms, their figure is closer to 18%. Compare that to iShares MSCI World Index, which performed closer to 40% over the same period (your growth would have been 90% plus) and your dividend yields are better.
0 Kudos
Reply
Super Contributor
Thanks skaaptjop.(I for one always value your input on this forum.) And again very interesting. If I am really honest with myself it is not that I wanted to cast suspicion on the DB x trackers it is just that the ride is so great and then I realized I wanted to understand more of them. Example how they are priced as "everybody" myself included are just buying because the rand is going to become worthless?? & some smart people in social media says so and maybe D/Bank want us to know so. ha
0 Kudos
Reply
Highlighted
Frequent Contributor
40% return for MSCI World Index ETF on the NYSE? Are you sure, Skaap? I only see 6.95% over the last few years...?
0 Kudos
Reply
Not applicable
Pretty sure - I think it was a bit more than this actually - maybe closer to 45%. Remember 2013 was a number year for all indices.
0 Kudos
Reply