ETF listed on different trading venues: which one should I prefer?

Investing / Others
#1

Hi Mustachians,

I was wondering: if you are a Swiss-based investor using Degiro and you’re interested in buying a certain ETF (or stock) that is listed on different trading venues (e.g. Xetra, Milan, London, …) what should I go with?

Thanks a lot in advance!

#2

Several factors…

  • Check their list of free ETFs… the free trades are only on a specific exchange.
  • If not on the list, factor in the 2EUR + 0.03% ETF transaction cost + 2.5 EUR/yr for holding positions on a given exchange
  • Then look at the volumes… higher volumes = lower spreads (avg. difference between bid and ask price)
  • Then look at the currency. If it is in CHF, you won’t lose 0.1% on currency exchange when buying.

But all this might be just optimising to the 0.01 Fr level so don’t go overboard.

Personally, if it is a one-off trade and it is free on a certain exchange, I’d buy on that one. If it’s not a “free ETF” then prefer the Six (Zürich exchange) listed one in CHF unless the volumes are really low. If it is a regular monthly trade that makes up the bulk of my investments, I would do the calculations…

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