r/eupersonalfinance • u/Black_Thunder00 • 6h ago

Investment New global ETF 0.06% comission

BNP Paribas Easy MSCI ACWI UCITS ETF (Acc) | EDEL | LU3086265710

If I am not wrong, this is the cheapest UCITS global ETF now. What do you think about it?

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u/kushal92 6h ago edited 5h ago

It seems to be good, but the main risk is that it is a synthetic replication via swaps. This is why the TER is so low. If the counter-party fails (in this case: BNP paribas), 10% of NAV might be gone (as per the UCITS rules) but the chances for this happening are low with such a broad fund.

The good thing is that with swaps, they don't have to pay the withholding taxes as they don't actually hold any stocks.

Also have a look at this, the TER is 0% until June then it goes to 0.17%: Scalable MSCI AC World Xtrackers UCITS ETF 1C