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DBX WORLD and EURO

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Warhorse
Occasional Contributor
With the rand currently showing some strength would this be a good time to accumulate some offshore DBX units or is there a realistic chance that it could strengthen below R14 to the USD? Any preference between DBX WORLD or EUROPE at present?
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Valued Contributor
world, as for the rand .. no idea
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Warhorse
Occasional Contributor
Thanks Simon, My preference is also world.
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Not applicable
why not just register an offshore account and buy the underlying ETF's? Cut out scores of middle men in the process. These things nail you both in local fees as well as dodgy daily exchange rate settlements.
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Warhorse
Occasional Contributor
Thanks Skaapie, interesting alternative. I will research your suggested option of opening an offshore account.
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Super Contributor
Rand has strengthened to below where it was when Zuma fired on 10 Dec ....
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Highlighted
Frequent Contributor
Hi Skaap. Let's say you have an offshore account. Are you saying that one must then go to Deutsche Bank directly and buy their ETF and that will save you money?
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Super Contributor
What skaaptjop says makes a lot of sense. Once you operate from an off shore account D/Bank becomes a "minnow" So many to choose from. Vanguard my favorite.
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Not applicable
Local index trackers still have to price international assets at a local exchange rate, and you know for sure they are putting a big spread on this (they are banks for goodness sake). Now, if you really want proof as to how poorly they perform vs their international counterparts, for example DBXWD vs any MSCI world ETF, look at the distribution yield of DBXWD vis this one, for example https://www.ishares.com/us/products/239696/ishares-msci-world-etf 1% yield on the local vs 2.1% on the international one. QED
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Valued Contributor
yip, the DBX charge 80.86% TR taken out of divs
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Frequent Contributor
Okay, so you have an offshore account and you reside here in SA. Do you contact Vanguard, DB or whoever directly, open an online account and then transfer money from your offshore account into their ETF of your choice?
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Valued Contributor
frig my inability to type .. 0.86% TER
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Super Contributor
What planet are you living on wanting to buy the DBX World?
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Not applicable
that is the part that is not shaded. Question is, they have an international asset they are quoting in local ZAR pricing, care to take a guess at the exchange rate they offer? Case in point, 1yr return for DBXWD is 15% vs 0.8% for the MSCI index. You might think that is amazing, but our currency has depreciated 20% or more over the same period, so in real terms, a 5% underperformance to the benchmark it is tracking.
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Super Contributor
I chose stxres for my tfsa. I bought 1000 on 23 Feb 2016 and 1000 on 1 March 2016 (either side of the tax year end). Up 17% at present.
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Super Contributor
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Frequent Contributor
Thanks Skaap. So do you go about it as I outlined below?
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Super Contributor
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Super Contributor
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Super Contributor
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