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?
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.
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
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?
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.