How does Selma select investment products?
Selma looks through all available investment products and picks the best ones – from different providers.
Selma selects investment products (especially ETFs) based on the following criteria
Hard Facts – Quantitative Factors
How expensive the investment products are. Measured with TER (Total Expense Ratio).
- Amount of Managed Assets
How much money is managed by a fund. Measured by AuM ( Assets under Management).
- Tracking Error
How precisely the product is tracking the underlying index.
Selma prefers full physical replication over synthetic replication. Also ETFs with low tracking errors are preferred.
Selma favours large AuM and multiple market makers. High liquidity and low spreads are preferred.
- Low price per share
In order to make rebalancing easier and more efficient, Selma prefers ETFs with the low absolute prices.
How well does the index cover the asset class?
The quality of the underlying index. What does it have in it? How is it calculated?
Do the investment products have negative tax consequences in your home country?