Hi everyone,
I want to start investing from buying a small portion of low-fee high performing ETF and\or Mutual Fund. I live in Russia, but I'm going to ask this question here.
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I see a lot of banks are offering both trading on the stock exchange market and OTC. I'm trying to understand why would I, as beginner investor, would choose one over the other? I see the fee structure is almost the same
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Some banks in Russia offer Mutual funds that track American ETF. For example, here is Sberbank's MF - America (in Russian) - it tracks ETF SPDR S&P500. I see the performance of ETF SPDR S&P500 for 1 year equals 16.17%. However, Sberbank says its MF rose 4.18% for the same period. Similarly, Otkritie bank offers (also in Russian) Mutual Fund that tracks iShares S&P 100. In yahoo finance I see that iShares Sp100 has 6.7% 6 months return. However, Bank's Mutual Fund says its 4,44%.
I don't understand where the difference is coming from. I understand there is currency difference, but RUB became stronger over the past year, so if any difference, logically it should be other way around - Bank's Mutual Fund showing higher return.
Do I not understand the concept of fund of funds? Please explain good people of reddit :)
Submitted September 23, 2017 at 07:59PM by Okaloha http://ift.tt/2xosxbs
