Question
Is there any way of investing in the German stock market?
I dont mind whether its an active or passively managed vehicle although I prefer Investment Trusts to Unit trusts, but this is not critical. I have not been able to find anything that invests purely in the German stock market and I have read that their stock market has performed well, and I think it will cotinue to, whereas I feel the rest of Europe is too risky at present.
On another matter I would like to say that I really appreciate the advice you have provided and that I think your web site is a great idea.Answer
Glad you're finding the site helpful!
Assuming you don't want to buy shares in individual German companies (which you can do cheaply via online stockbrokers including TD Waterhouse, iWeb and iDealing) then your options are limited.
The only unit trust I know of that invests solely in German companies is Baring German Growth. Performance versus the index has been promising since manager Robert Smith took over the reins at the end of 2008. Like you, I can't find an equivalent investment trust.
Your other option would be to use an exchange traded fund (ETF) that tracks a German stockmarket index - I've found a couple:
db x-trackers DAX ETF - tracks the German DAX 30 Index for an annual charge of just 0.15%. It has distributor/reporting status so gains are subject to capital gains tax and not income tax (see this previous question to understand why this is important). It's traded on the Frankfurt, Swiss and Swedish stock exchanges.
ETFX DAX 2 x Long Fund - aims to provide double the rise (or fall) of the DAX 30 Index on a daily basis. Could make you a lot of money if the DAX soars, but the two times leveraging and daily compounding make the risks high. You also won't benefit from any dividends. It's traded on the London Stock Exchange.
So not much choice I'm afraid, but you can hopefully achieve your aims using one or more of the above options.
Is there any way of investing in the German stock market?
I dont mind whether its an active or passively managed vehicle although I prefer Investment Trusts to Unit trusts, but this is not critical. I have not been able to find anything that invests purely in the German stock market and I have read that their stock market has performed well, and I think it will cotinue to, whereas I feel the rest of Europe is too risky at present.
On another matter I would like to say that I really appreciate the advice you have provided and that I think your web site is a great idea.Answer
Glad you're finding the site helpful!
Assuming you don't want to buy shares in individual German companies (which you can do cheaply via online stockbrokers including TD Waterhouse, iWeb and iDealing) then your options are limited.
The only unit trust I know of that invests solely in German companies is Baring German Growth. Performance versus the index has been promising since manager Robert Smith took over the reins at the end of 2008. Like you, I can't find an equivalent investment trust.
Your other option would be to use an exchange traded fund (ETF) that tracks a German stockmarket index - I've found a couple:
db x-trackers DAX ETF - tracks the German DAX 30 Index for an annual charge of just 0.15%. It has distributor/reporting status so gains are subject to capital gains tax and not income tax (see this previous question to understand why this is important). It's traded on the Frankfurt, Swiss and Swedish stock exchanges.
ETFX DAX 2 x Long Fund - aims to provide double the rise (or fall) of the DAX 30 Index on a daily basis. Could make you a lot of money if the DAX soars, but the two times leveraging and daily compounding make the risks high. You also won't benefit from any dividends. It's traded on the London Stock Exchange.
So not much choice I'm afraid, but you can hopefully achieve your aims using one or more of the above options.
Read this Q and A at http://www.candidmoney.com/questions/question349.aspx
Thanking you for the information. I was really hoping to get some tips on the invest in stock market as I am new in stock market and starting with only small amount which means a lot to me.
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