Ishares, Xtrackers, HSBC, Investco & Co.: Many different names, which providers are behind and what the names of ETFs reveal.
Brand, index, regulations and characteristics
ETFs are becoming increasingly popular in Europe. According to a recent study by the ETF provider Ishares, the investment volume in ETFs is to increase to 650 billion euros in continental Europe by 2028. At the end of 2023 it was around 200 billion euros. The investment volume would have more than tripled within the next five years. The names of the different ETFs and what they mean can be explained simply.
As a rule, the ETF name is always composed according to the following scheme: 1. ETF-emittent (publisher)
2. Index name
3. Regulatory information
4. Other characteristics
As an example: Ishares Core Msci World Ucits Etf. In the first place, the ETF fund company, i.e. the ETF emittee, is called. In the example, the issuer “Ishares”, a product group of stock exchange -traded funds of the investment giant Blackrock. The underlying index is in second place MSCI World, Dax, Euro Stoxx 50, or S&P 500 are other indices that are often used as indicators in business messages and are traded on exchanges as ETFs. Among other things, the naming of the comparison index reveals which shares contain an ETF and which countries and regions he focuses on. In third place there are regulatory information. “Ucits” stands for a European standard: “Undertakings for Collective Investments in Transferable Securities”. This contains rules and requirements for investment funds. ETF describes the type of system.
In some cases, more names follow in fourth place. For funds that are not in euros, for example, the currency (USD, CHF, GBP, etc.) is mentioned. Therefore, some funds have a currency insurance that is marked with the term “hedged”. The use of earnings (C, ACC) or distributing (DIS, DIST) – can also be specified. In some ETF, the abbreviations DR or Swap, which describe the replication method, can be found in brackets. DR stands for direct replications – i.e. the physical replication, in which the ETF emittent actually buys all shares contained in the ETF. In contrast, SWAP indicates a synthetic replication of the ETF. The ETF domicile is rarely called – mostly if it can have tax advantages if the domicile z. B. is in Germany. However, there is no uniform description: in Ishares (DE) is in the fund name, at comstage “1”.
Additional parameters
In addition to the names of the different ETFs, it always makes sense to read the information sheet, which is included in all brokers. There are ongoing costs, as well as the type of distribution, thesaurant or distributing, listed and recorded in writing, since they cannot always be derived by the name.
Editor finance.net
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