Buy SDAX ETF: Benefit from the potential of small and mid-caps
With an SDAX ETF, you as an investor can easily participate in the performance of the “secret world market leaders”. An exchange-traded fund (ETF), i.e. an exchange-traded index fund, replicates the underlying index, in this case the SDAX, ideally 1:1. If the SDAX increases by one percent, the SDAX ETF also increases by one percent.
The differences from one SDAX ETF to another are marginal at first glance, but they can have a long-term effect and may cost you a return. In addition to the fees, which (negatively) influence performance, the type of replication, the type of distribution and the investment costs also determine how precisely an ETF reflects the price development of the underlying index.
A physically replicating ETF (direct replication) buys and sells the original shares listed in the underlying index – at the full replication the original shares are bought in full, at the so-called optimized sampling only the most important stocks in the index are bought.
Synthetically replicating ETFs (indirect replication) On the other hand, the ETF providers map the price development of the underlying index via a so-called swap transaction – you can find out exactly what that is and more about the different replication methods, types of distribution and fees of index funds in the guide articles Buy ETF, DAX ETF and ETF savings plan as well as in our ETF lexicon, in which we explain the most important terms relating to funds and ETFs. Below we briefly highlight the most important factors when choosing an ETF.