Instruments for passive investment strategies

ETFs (Exchange Traded Funds) are investment funds that pursue a passive investment strategy by tracking the performance of a specific index, such as the DAX^® or the EURO STOXX 50^® , as precisely as possible. Buying an ETF gives investors access to an entire market with just a single transaction while saving transaction costs, which would otherwise accrue for each individual investment.

The range of accessible indices is broad. The current product offering on Xetra^® includes more than 2,100 ETFs that provide access to asset classes such equities, bonds, commodities, and individual sectors. In addition, investors have the option of choosing indices that focus on special strategies or which include shares that meet high sustainability standards such as ESG (Environment, Social, Governance) or SRI (Socially Responsible Investing) criteria.  

Multi-currency trading for ETFs and ETPs: This service offers the possibility to trade the same ISIN in multiple trading currencies as stand-alone instruments on Xetra (see Focus: Multi-Currency)

Investors can either use ETFs as long-term investments or for strategy purposes, including cash equitization, speculation or to hedge portfolio risks. Private investors are increasingly using ETFs for asset accumulation and retirement investing. 

ETFs are traded on an exchange just like stocks

On Xetra, orders can be executed continuously from 9:00 until 17:30. All order types are accepted, and the minimum order size is just one share. Liquidity is provided continuously by Designated Sponsors with binding bid and ask prices. Investors can use the iNAV (indicate net asset value) that is updated at least every 60 seconds as a reference to verify the current bid and ask prices.

Xetra has been the leading European trading venue since launching the ETF segment in April 2000. It has the largest number of ETFs and highest trading volume in Europe.