DEGIRO Core selection ETFs
In this blog we will take you through everything you need to know about the DEGIRO core selection, and how you can apply it as an investor when buying or selling ETFs.
DEGIRO core selection: what is it?
When trading in ETFs, the investor generally pays transaction costs. However, there is a list: the DEGIRO core selection. This is a list of ETFs for which the investor does not have to pay transaction costs. In addition to being very clear, it also has advantages for the user: a considerable return can be achieved. This is because the transaction costs often consist of an investment percentage and a fixed amount.
In which case do I, as an investor, NOT pay any costs on an ETF?
You might think that there is a catch, that you do not have to pay transaction costs on this list. Although it is really that simple, there are a few conditions, which you as an investor must adhere to:
There is no unlimited use of the DEGIRO core selection. This means that you can buy ETFs from this list once a month (not every 30/31 days). Suppose you buy an ETF on May 31, then you can do this again on June 1. This applies per ISIN code, which means that if you buy 2 different funds that are both in the core selection, you do not pay any transaction costs.
The free purchase does not apply to all exchanges, but to a certain selection: Euronext Amsterdam, London Stock Exchange, Borsa Italiana, Xetra, Bolsa de Madrid and Euronext Paris. For investors from the Netherlands it is nice to know that these all have the euro as currency.
As an investor, you can buy an ETF twice a month with a purchase value of + €1000,-. This also applies to the sale of an ETF.
An important tip: pay attention to the combined exchanges and ISIN codes!
The VWRL is bought and sold as an ETF on various exchanges. The list that is in the core selection next to the Euronext Amsterdam are the only ones that belong to it. Exchanges such as the SWX (Switzerland), LSE (London) and the MIL (Milan) also trade this fund, but as an investor you do pay the transaction costs there. That is why it is good to take this into account when investing, to avoid surprises.
5 tips for ETFs within the DEGIRO core selection
Below you will find five ETFs that can be found in the DEGIRO core selection.
1. VWRL – Vanguard FTSE All World Eur
The VWRL, or The Vanguard FTSE All-World UCITS ETF is a fund in which 3500 different companies are spread across the world. This automatically also ensures a better spread in your wallet. If you as an investor want global diversification in the economy, the VWRL could be a good choice in DEGIRO core selection.
2. VanEck Semiconductor ETF
A global topic of conversation is Semiconductors. With an ETF, investors have exposure to multiple things, while shares are often expensive on their own. This ETF tracks as accurately as possible, the maximum weight of one fund is limited to 10% (ASML is also present within this ETF).
3. iShares Electric Vehicles and Driving Tech ETF
In this ETF there are approximately 130 positions from the technology and automotive industry. If you are interested in this sector as an investor, it can certainly be wise to delve into what it has to offer, and how you can get started with it as an investor.
4. L&G Cyber Security UCITS ETF
Cyber security is increasingly emerging as a sector. This is mainly because a lot of life and work is done via the internet. Because this does not always appear to be safe, there are now more than enough companies that have specialized in cyber security, so that internet users can surf the internet without worries (also investors). If you find this ETF interesting and would choose it, then you are an investor in this type of company. A big advantage is that diversification is present, and there is a great future in this sector.
5. VanEck Vectors VideoGaming UCITS ETF USD A
eSports and gaming are now an indispensable part of our world, including that of investing. E-sports also offer interesting opportunities as an investment. As an investor, it is therefore advisable to take a look at how you could invest in technology, stadiums, game centers and sponsors.
Conclusion
DEGIRO core selection therefore offers many possibilities in the field of ETFs, which also require further research if you as an investor are considering taking it seriously. For a complete overview of the more than 200 index funds, it is advisable to read the entire list.
Although investing via this list is a good option for many, and you have the chance to save on transaction costs, it is true that it still involves investments. So that you have chosen the right fund within the right stock exchange, for example, and that you also adhere to the conditions of DEGIRO. This ensures that fewer unnecessary risks are taken, and that you are also responsible with ETFs.
If you as an investor find it difficult to start in the list, it is also wise to read up on the pros and cons and also take small steps in this. This way you invest safely and responsibly.
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