- Level: For beginners
- Reading duration: 3 minutes
What to expect in this article
ETF volume: Why it matters
Small ETFs with low fund volumes are less profitable for ETF providers than large ones. The reason: whether they manage many customer funds or only a few – the effort is almost the same. When an ETF is new on the market, most ETF providers therefore give it a trial period of about one year. If it fails to deliver on its promises during this time, especially to bring in a lot of money, the likelihood of it being closed again or liquidated increases. And that can have unpleasant consequences for your investment, as described in the section below. Of course, ETFs with a small fund volume can also be interesting for a provider and exist on the market in the long term. In this case, further strategic considerations regarding the product range, the expense ratio and the trading volume play a decisive role.justETF Tip: Find out in our article The right ETF selection: Tips and tricks which ETFs fit your investment structure and how you can prioritise the individual criteria.
Large ETFs benefit from economies of scale
Size makes the difference – this is especially true for ETFs on the common indices. Because then economies of scale take full effect through the distribution of fixed costs. This usually manifests itself in scope for cost reductions. Especially in recent years, ETF providers have reduced costs in several rounds because of the high competition, from which you as an ETF fan automatically benefit. With increasing size, the number of shares in circulation of an ETF also increases. This simultaneously ensures lower buying and selling margins. The creation-redemption process which keeps the transaction costs within an ETF as low as possible, also contributes to this.The 10 largest ETFs (by volume)
Fondsname | ISIN WKN |
4 weeks chart |
Fund size in EUR million |
Costs(TER) | Yield 1 year |
---|---|---|---|---|---|
iShares Core S&P 500 UCITS ETF USD (Acc) | IE00B5BMR087 A0YEDG |
103,190 | 0.07% p.a. | 36.42% | |
iShares Core MSCI World UCITS ETF USD (Acc) | IE00B4L5Y983 A0RPWH |
88,228 | 0.20% p.a. | 30.81% | |
Vanguard S&P 500 UCITS ETF (USD) Distributing | IE00B3XXRP09 A1JX53 |
43,772 | 0.07% p.a. | 36.42% | |
Invesco S&P 500 UCITS ETF | IE00B3YCGJ38 A1CYW7 |
27,398 | 0.05% p.a. | 36.07% | |
iShares Core MSCI Emerging Markets IMI UCITS ETF (Acc) | IE00BKM4GZ66 A111X9 |
21,443 | 0.18% p.a. | 18.93% | |
iShares Core S&P 500 UCITS ETF USD (Dist) | IE0031442068 622391 |
18,299 | 0.07% p.a. | 36.44% | |
Vanguard S&P 500 UCITS ETF (USD) Accumulating | IE00BFMXXD54 A2PFN2 |
17,172 | 0.07% p.a. | 35.82% | |
iShares Physical Gold ETC | IE00B4ND3602 A1KWPQ |
16,358 | 0.12% p.a. | 37.15% | |
iShares Nasdaq 100 UCITS ETF (Acc) | IE00B53SZB19 A0YEDL |
16,218 | 0.33% p.a. | 37.24% | |
Invesco Physical Gold A | IE00B579F325 A1AA5X |
16,127 | 0.12% p.a. | 36.49% |
Source: justETF Research; Status: 10.12.24
What happens when an ETF is liquidated
If an ETF is closed, this has unpleasant consequences for your investment. Once the worst case scenario has occurred, you have two options for action:- Either you sell your shares on the stock exchange before the ETF is liquidated and transfer them to a comparable ETF if necessary.
- Or: You simply wait. In this case, the fund automatically sells all the units it contains and you participate in equal measure in the sales proceeds.
justETF Tip: With a minimum volume of around 100 million euros, an ETF can be managed cost-efficiently. The larger the fund volume, the less likely it is to be closed.