UBS offers quite a lot of attractive ETFs. Sometimes they have one of the lowest TER and/or good performance.
I looked in the Factsheet and KIID and there is a Entry charge 5%, Exit charge 3%, Conversion fee 3%.
I’m note sure if it is really charged because the footnote is not clear to me.
I saw it too. I think (plz somebody confirm or disprove!) this does not apply to the private investor but to institutional investors that engage into the creation/ redemption mechanism. But no guarantee!
I want to add another example that might highlight the question more obviously:
the Raiffeisen Pension Invest Futura Balanced A (couldnt find the online document) lists
KIID footnotes says:
² This entry charge is applicable to investors who subscribe with the Company.
³ This exit charge is applicable to investors who redeem their Shares with the Company.
Which investor? Which company? Is it me, is it the broker, is it a fund manager, is it UBS…?
But I think you’re right with the creation/ redemption mechanism.
If you buy/sell our ETFs on exchange through your broker no entry or exit fees apply. These fees apply only if you would create or redeem shares directly with the ETF, but only market makers do that.
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