Our ETF Selection Criteria

Rigorous evaluation for your investment success

When selecting investment vehicles, Ginmon takes extra care to minimize the risk for you, the investor, and to work as cost efficiently as possible. The ETFs and index funds utilized by Ginmon have to meet several criteria. The proprietary Ginmon technology is always screening the market for new and better products. Therefore, we can adjust your portfolio as needed to offer you an even better service in the future. With Ginmon you make sure that everything is in place for a successful long-term wealth creation.

Diversification

In total, Ginmon’s investment strategies track the performance of almost 12,000 securities from 103 countries. When selecting ETFs we attach special importance to diversification. E.g. we deeply scrutinize index methodologies to ensure they are as inclusive as possible.

The following criteria guide our decision process:

• Broad diversification
• Low degree of optimized sampling
• Extensive index methodology

Return

Your long-term financial success depends on more than just the right strategy; subtle differences in product structures may also have a significant impact. Therefore, we pay special attention to tax efficiency and the return of lending revenues to the fund in order to exploit all potential sources of investment return.

The following criteria guide our decision process:

• Tax efficiency
• Roll optimization
• Return of lending revenues to fund

Costs

When selecting index funds cost efficiency is one of our prime considerations. We consider all direct and indirect product costs such as TER or tracking error as well as trading costs. By selecting funds with high liquidity and narrow bid-ask spreads we can ensure that there will be no unexpected trading costs.

The following criteria guide our decision process:

• Low TER
• High liquidity
• High trading volume
• Narrow spreads
• Low tracking error
• Low tracking difference

Security

As a digital wealth manager we manage more than just assets; we manage risks. In order to minimize counterparty and default risks, we prefer physically replicating ETFs and low securities lending activity. For funds that are engaged in securities lending, we strictly require collateralization in excess of 100%.

The following criteria guide our decision process:

• Physical replication
• Low securities lending
• High collateralization of securities lending
• High credit quality
• Hard currencies
• Quality weighting

No speculation

With Ginmon you are invested for the long term. We will never participate in speculative asset classes such as currencies or agricultural products. Neither will we jump onto trending short-term topics which usually cost more than is justified by their returns.

• No agricultural products
• No currencies
• No crypto currencies
• No trending topics

Based on these strict criteria, the proprietary apeironselect algorithm constantly monitors the entire universe of index funds, so that it can present you optimisation potentials when necessarynen.
Learn more about Apeiron >

Our Product Universe

Only the best components

Based on our strictly defined criteria, our selection algorithm apeironselect screens regularly the whole universe of more than 1,700 index funds and ETFs in order to identify the most suitable components for your portfolio. The latest output of our algorithm can be found below. The allocation of each product varies depending on the investment strategy, hence, not every product is included in every portfolio.

Asset class ETF TER
Asset class EquityEquity
Small cap stocks worldwide SPDR MSCI World Small Cap 0,45%
Value stocks worldwide Xtrackers MSCI World Value 0,25%
US stocks Xtrackers MSCI USA 0,07%
European stocks Vanguard FTSE Developed Europe 0,12%
Emerging market stocks iShares Core MSCI EM IMI 0,18%
Japanese stocks Vanguard FTSE Japan 0,19%
Stocks Asia Pacific BNP Paribas Easy MSCI Pacific ex Japan ex CW 0,25%
Asset class Real EstateReal Estate
Real estate worldwide HSBC FTSE EPRA/NAREIT Developed 0,40%
Asset class Fixed IncomeFixed Income
US Treasury bonds SPDR Bloomberg Barclays 1-3 Year US Treasury Bond 0,15%
Eurozone government bonds Lyxor EuroMTS Highest Rated Macro-Weighted Govt Bond 3-5Y 0,17%
Euro corporate bonds Xtrackers II EUR Corporate Bond 0,16%
Emerging market government bonds UBS Bloomberg Barclays USD Emerging Markets Sovereign 0,42%
Eurozone inflation-linked government bonds Lyxor EuroMTS Inflation Linked Investment Grade 0,20%
Asset class CommoditiesCommodities
Commodities BNP Paribas Easy Energy & Metals Enhanced Roll 0,49%

Our ETF Selection Criteria

Rigorous evaluation for your investment success

When selecting investment vehicles, Ginmon takes extra care to minimize the risk for you, the investor, and to work as cost efficiently as possible. The ETFs and index funds utilized by Ginmon have to meet several criteria. The proprietary Ginmon technology is always screening the market for new and better products. Therefore, we can adjust your portfolio as needed to offer you an even better service in the future. With Ginmon you make sure that everything is in place for a successful long-term wealth creation.

Diversification

In total, Ginmon’s investment strategies track the performance of almost 12,000 securities from 103 countries. When selecting ETFs we attach special importance to diversification. E.g. we deeply scrutinize index methodologies to ensure they are as inclusive as possible.

The following criteria guide our decision process:
• Broad diversification
• Low degree of optimized sampling
• Extensive index methodology

Return

Your long-term financial success depends on more than just the right strategy; subtle differences in product structures may also have a significant impact. Therefore, we pay special attention to tax efficiency and the return of lending revenues to the fund in order to exploit all potential sources of investment return.
The following criteria guide our decision process:

• Tax efficiency
• Roll optimization
• Return of lending revenues to fund

Costs

When selecting index funds cost efficiency is one of our prime considerations. We consider all direct and indirect product costs such as TER or tracking error as well as trading costs. By selecting funds with high liquidity and narrow bid-ask spreads we can ensure that there will be no unexpected trading costs.
The following criteria guide our decision process:

• Low TER
• High liquidity
• High trading volume

• Narrow spreads
• Low tracking error
• Low tracking difference

Security

As a digital wealth manager we manage more than just assets; we manage risks. In order to minimize counterparty and default risks, we prefer physically replicating ETFs and low securities lending activity. For funds that are engaged in securities lending, we strictly require collateralization in excess of 100%.

The following criteria guide our decision process:

• Physical replication

• Low securities lending
• High collateralization of securities lending
• High credit quality
• Hard currencies
• Quality weighting

No speculation

With Ginmon you are invested for the long term. We will never participate in speculative asset classes such as currencies or agricultural products. Neither will we jump onto trending short-term topics which usually cost more than is justified by their returns.

• No agricultural products
• No currencies
• No crypto currencies
• No trending topics

Based on these strict criteria, the proprietary apeironselect algorithm constantly monitors the entire universe of index funds, so that it can present you optimisation potentials when necessarynen.
Learn more about Apeiron >

Our Product Universe

Only the best components

Based on our strictly defined criteria, our selection algorithm apeironselect screens regularly the whole universe of more than 1,700 index funds and ETFs in order to identify the most suitable components for your portfolio. The latest output of our algorithm can be found below. The allocation of each product varies depending on the investment strategy, hence, not every product is included in every portfolio.

Asset class ETF TER
Asset class EquityEquity
Small cap stocks worldwide SPDR MSCI World Small Cap 0,45%
Value stocks worldwide Xtrackers MSCI World Value 0,25%
US stocks Xtrackers MSCI USA 0,07%
European stocks Vanguard FTSE Developed Europe 0,12%
Emerging market stocks iShares Core MSCI EM IMI 0,18%
Japanese stocks Vanguard FTSE Japan 0,19%
Stocks Asia Pacific BNP Paribas Easy MSCI Pacific ex Japan ex CW 0,25%
Asset class Real EstateReal Estate
Real estate worldwide HSBC FTSE EPRA/NAREIT Developed 0,40%
Asset class Fixed IncomeFixed Income
US Treasury bonds SPDR Bloomberg Barclays 1-3 Year US Treasury Bond 0,15%
Eurozone government bonds Lyxor EuroMTS Highest Rated Macro-Weighted Govt Bond 3-5Y 0,17%
Euro corporate bonds Xtrackers II EUR Corporate Bond 0,16%
Emerging market government bonds UBS Bloomberg Barclays USD Emerging Markets Sovereign 0,42%
Eurozone inflation-linked government bonds Lyxor EuroMTS Inflation Linked Investment Grade 0,20%
Asset class CommoditiesCommodities
Commodities BNP Paribas Easy Energy & Metals Enhanced Roll 0,49%

Our Product Universe

Only the best components

Based on our strictly defined criteria, our selection algorithm apeironselect screens regularly the whole universe of more than 1,700 index funds and ETFs in order to identify the most suitable components for your portfolio. The latest output of our algorithm can be found below. The allocation of each product varies depending on the investment strategy, hence, not every product is included in every portfolio.

  

 

 

Mainzer Landstraße 33a
60329 Frankfurt am Main
Phone +49 69-15322-7340