Best AEX ETFs – Explanation and examples
The Amsterdam Exchange Index (AEX) is a well-known stock market index in the Netherlands, which shows the performance of the largest Dutch companies on the stock exchange. Investors can follow the performance of the AEX by investing in AEX Exchange Traded Funds (ETFs) . In this blog you can read everything you need to know about buying the best AEX ETFs.
Before you start buying the best AEX ETFs, it is important to know what the term means. ETFs are investment funds that offer investors the opportunity to invest in a wide range of underlying investments, such as shares, bonds and commodities. AEX ETFs offer investors the opportunity to invest in a large number of Dutch companies in one fund. Examples of companies from the AEX are Shell, Heineken, KPN and ASML.
Best AEX ETFs – What are AEX ETFs?
AEX ETFs are ETFs that are based on the performance of the AEX index. They contain shares of the companies that are included in the AEX index and give investors the opportunity to invest in these companies via an ETF. The AEX index follows the price of the 25 largest listed companies together. EX ETFs offer investors a simple and affordable way to invest in Dutch shares, without having to delve into the specific companies.
What is the AEX?
The AEX (Amsterdam Exchange Index) is a stock market index that shows the performance of the 25 largest listed companies in the Netherlands. These companies are evaluated regularly and if a company disappears from the index, it is replaced by another listed company. The companies that are included in the AEX are ranked based on the market capitalization of the shares that can be traded freely. In other words: the shares that are not owned by large shareholders.
In addition to the AEX, you also have the AMX . These are the 25 companies that are just too small for the AEX. Below the AMX, you also have the AScX, which are the 25 companies that are just too small for the AMX.
The Best AEX ETFs
With the increasing popularity of ETFs (Exchange Traded Funds), it is more important than ever to know which AEX ETFs are best for your investment portfolio. What different options are available on the Dutch market and how do you make the best choice?
There are several AEX trackers available, and the best AEX ETF depends on an investor’s individual investment needs and goals. Some popular AEX ETFs include iShares AEX, Lyxor AEX and Amundi AEX, but what do the various ETFs entail and what are the differences? This will be explained later in the blog.
Why invest in AEX ETFs?
There are several reasons to invest in AEX trackers. Firstly, they offer investors the opportunity to invest in a wide range of Dutch companies, allowing them to diversify their portfolio. Secondly, AEX ETFs are easy to buy and sell and offer investors the opportunity to invest in the performance of the Dutch stock market without buying individual shares.
Thirdly, you ensure a lower risk. Suppose that one of the companies in this ETF does badly, then the other companies in the index can make up for this loss. It is important that there is also diversity between sectors.
What AEX trackers are there?
There are various AEX ETFs available, both from Dutch and foreign providers. Some popular AEX ETFs are iShares AEX, Lyxor AEX, Amundi AEX, VanEck AEX and UBS ETF MSCI Netherlands AEX. Below we list them one by one for you. The AEX ETFs are in random order of popularity.
1. iShares AEX UCITS ETF
The first AEX ETF we are going to discuss is the iShares AEX UCITS ETF. This ETF is a product of the international investment company Blackrock, which is active in 35 countries worldwide. The fund pays out dividends to investors once a quarter. The ETF charges a management fee and an ongoing cost factor of 0.30%.
2. VanEck AEX UCITS ETF
Another AEX ETF is the VanEck AEX UCITS ETF. The ETF is part of the Van Eck Associates Corporation, an international investment company founded in 1955 in New York City in the United States. Just like iShares, this AEX tracker also pays out dividends quarterly. In addition, with the VanEck ETF you also have a management fee and an ongoing cost factor of 0.30%.
Also read our blog in which we compare the iShares AEX ETF with the VanEck AEX ETF .
Best AEX Tracker: How much does it cost?
The costs of an AEX ETF can vary depending on the provider and the specific ETF. Many AEX ETFs have a management fee of approximately 0.10% to 0.30% per year. It is important to compare the costs of each ETF before you decide to invest. The management fee is part of the ongoing costs of an ETF.
AEX a reinvestment index ETF or not?
The AEX is a reinvestment index, which means that the composition of the index is regularly adjusted to reflect the performance of the largest listed companies in the Netherlands. AEX ETFs that track the performance of the AEX are also reinvestment index ETFs.
Dividend AEX ETF
There are also AEX ETFs that focus on delivering dividend income, rather than the performance of the AEX index. Dividend AEX ETFs invest in companies that regularly pay dividends and can be a good option for investors looking for a stable source of income. The dividend is often paid out quarterly.
Conclusion
AEX ETFs offer investors the opportunity to invest in a wide range of Dutch companies, allowing them to diversify their portfolio and track the performance of the Dutch stock market. There are several AEX ETFs available, so it is important to compare costs, composition and investment objectives before deciding to invest.
Are you interested in investing in the best AEX ETFs after reading this blog, but you don’t have a broker to invest with yet? Then use our comparator and compare completely free and independently different ETF brokers.