Active vs. Passive ETFs: Insights and educational tips from Roger Peeters

Active vs. Passive ETFs: Insights and educational tips from Roger Peeters

In conversation with Roger PEETERS On the current situation on the financial front, the importance of active investments is particularly emphasized. The dynamics of the market can be seen in the discussion about the so-called anti-Fomo strategy and the advantages that can offer later engagement in the investment process. According to Welt the view that active investments not only bring financial advantages, but also can also contribute to improving the world.

PEETERS, himself the father of six children, divides personal insights into his everyday life and gives educational tips that are important even in times of economic uncertainty. The podcast on this topic is available on platforms such as Spotify, Apple Podcasts and Amazon Music. In addition, subscribers receive additional content via World Plus and the AAA newsletter.

The role of ETFs in the investment world

ETFs that have been available in the USA since the 1990s and since 2000 are a significant form of investment. With hundreds of variants that map almost every index, they offer investors broad. The advantages of ETFs lie in the low amount of envelope, low costs and the possibility for investors to pursue long -term strategies. According to rankia , the total cost quotas (ter) of passively managed ETFs are often lower than those of traditional investment funds.

Passive ETFs aim to reproduce the performance of benchmark indices such as the Dax or the Euro Stoxx 50, while active ETFs try to exceed these benchmarks through the action of fund managers. However, these active strategies are often associated with higher administrative costs that can be between 0.5% and 1.5% or more. In comparison, passive ETFs often have ters of less than 0.3%.

market transparency and tax aspects

In Germany, ETFs are subject to strict regulations by BaFin, which defines transparency and disclosure guidelines. Before investors invest in ETFs, it is important to read the basic information sheet (BIB) and the sales prospectus in order to make informed decisions. In addition, you should be aware that earnings from ETFs are subject to a compensation tax of 25% plus solidarity surcharge and, if necessary, church tax.

The saver's lump sum, which is 1,000 euros for individuals and 2,000 euros for married couples in 2024, enables tax -free investment income up to this amount. It should also be noted that the ETFs have been subject to the preliminary flat rate since 2018, an annual minimum taxation.

The decision between active and passive forms of investment depends on various factors, including the total cost rate, the tracking accuracy for passive ETFs and the power on active ETFs. A well -founded choice can be crucial for long -term success in the investment area.