Our ETF selection criteria

Only the best investment vehicles

When selecting investment vehicles, Ginmon takes extra care to minimise the risk for you, the investor, and to work as cost efficiently as possible. The index funds in Ginmon deposits have to meet several criteria. The proprietary Ginmon technology is always scanning the market for new and better products. Therefore, we can adapt 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 your long-term success in wealth creation.

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Physical replication

Ginmon uses only index funds which represent actual company shares by physical replication. In this way you avoid any synthetic derivatives and unnecessary counterparty risks.

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High cost efficiency

In selecting the index funds, Ginmon attaches great importance to cost efficiency. This is measured in terms of the total expense ratio (TER) and the tracking error relative to the underlying index.

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Minimal securities lending

Fund companies usually lend securities contained in a fund to third parties to earn additional profits for themselves and their customers. We take care that securities lending is as low as possible so that you can avoid default risks.

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Maximum diversification

In total, Ginmon covers more than 10,000 companies from about 50 countries in its investment strategy. When selecting individual investment vehicles, the focus is on the highest possible level of diversification.

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Simple tax rules

Some investment products can lead to a great deal of complexity in filing your tax return. With Ginmon you don’t use non-distributing investment funds domiciled abroad, so you avoid incurring any additional disclosure requirements in your tax return or even double taxation.

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Low spreads

With Ginmon you select investment vehicles with a high liquidity and low spreads. The difference between bid and ask prices usually is less than 0.1 percent. No unexpected trading costs will arise.

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 necessary.

Learn more about Apeiron >

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

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

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 trror
• Low tracking difference

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

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.

 

The following criteria guide our decision process::

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

Keine Spekulation

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.

The following criteria guide our decision process:

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

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.
Learn more about Apeiron >

Apeiron select ETF-Overview

Asset class ETF TER
Anlageklasse Aktien Equity
Small cap stocks worldwide SPDR MSCI World Small Cap UCITS ETF 0.45%
Value stocks worldwide Xtrackers MSCI World Value UCITS ETF 0.25%
US stocks Xtrackers MSCI USA UCITS ETF 0.07%
European stocks Vanguard FTSE Developed Europe UCITS ETF 0.12%
Emerging market stocks iShares Core MSCI EM IMI UCITS ETF 0.25%
Japanese stocks Vanguard FTSE Japan UCITS ETF 0.19%
Stocks Asia Pacific BNP Paribas Easy MSCI Pacific ex Japan ex CW UCITS ETF 0.25%
 
  Real Estate
Real estate worldwide HSBC FTSE EPRA/NAREIT Developed 0.40%

Anlageklasse Aktien Fixed Income

US Treasury bonds SPDR Bloomberg Barclays 1-3 Year US Treasury Bond UCITS ETF 0.15%
Eurozone government bonds Lyxor EuroMTS Highest Rated Macro-Weighted Govt Bond 3-5Y (DR) UCITS ETF 0.165%
Euro corporate bonds Xtrackers II EUR Corporate Bond UCITS ETF 0.16%
Emerging market government bonds UBS Bloomberg Barclays USD Emerging Markets Sovereign UCITS ETF (USD) 0.42%
Eurozone inflation-linked government bonds Lyxor EuroMTS Inflation Linked Investment Grade (DR) UCITS ETF 0.20%

Anlageklasse Aktien Commodities

Commodities BNP Paribas Easy Energy & Metals Enhanced Roll UCITS ETF EUR 0.49%
  

 

 

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