Hi my friends, in this post I’ll show you how to invest in Germany, buying a simple ETF called DAXEX that invest in the DAX index, the 30 biggest companies in Germany.
Brazil has tax accord with 3 countries: The US, UK, and Germany.
So I decided to invest in stocks with only these domicile. I need to see what happen if I die or need to donate my stocks domiciled in Germany.
What do I think about Germany?
I always liked Germany. Germany is the throbbing heart of Europe. His extremely positive economic recovery in the two postwar wars highlights how strong the soul of the German people is and how reliable their economy and institutions are.
I have no doubt that a highly educated, skilled and productive people represent a good investment without any doubts, in addition, German companies operate throughout Europe and most also in the rest of the world. The German people are a money-making machine.
We all know that a good investment it’s diversified among sectors, companies, passive index, a lower fee of administration, good country to invest, I bought the stock DAXEX. With this stock, you can invest in 30 companies together, with a fee of only 0,16% a.a. It doesn’t pay any dividends, it’s a pure accumulation fund, what it’s very good because we will no longer be taxed in this dividends in our home country.
Why did I make the decision to invest in Germany?
CORE index ETF Germany domiciled.
Tax efficiency (accumulation)
P/B = 1,83
P/E = 16,36
CAPE SCHILLER = 18,6
US market with high valuations.
Since 1955 the index media returns it’s 7,9% a.a, as you can see here:
Let’s take a look in this paper. If you prefer go to Black Rock’s website: https://www.ishares.com/lu/individual/en/products/251464/ishares-dax-ucits-etf-de-fund?siteEntryPassthrough=true&locale=en_LU&userType=individual
As you can see, a lot of good brands and companies in this basket.
Hamburgo – Germany
This ETF it’s distributed by Black Rocks, it’s a CORE fund as you can see here in this document (fourth line). It’s in EURO currency, based in Germany.
As always I told you guys, “The market always goes up”. You can see this here, since from 70′
If you want to know year by year, take this table, remember .COM BUBBLE in 2000, the subprime American crisis at 2008. I don’t remember what’s happened at 2011 to make this poor results that year, but it’s ok.
I can’t find this paper on Morningstar website, but I found this one EWG that is pretty similar:
Beautiful and colorful night at Germany.
- The DAX has generated 7.9% per annum in the past 25 years while German government bonds yielded 6.8% on an average.
- Since 1955 the returns have been mostly positive in the vast majority of the years. In 39 years the returns were positive compared to 19 years in which returns were negative.
“In hindsight, there is no doubting that the DAX has created wealth. It has increased more than eightfold in its nearly 25 years of existence. Put another way: Someone who put 1,000 (or close to 2,000 DM) euros into the DAX back then would have around 8,500 euros at the end of May 2013. It has been, despite all the highs and lows, a good investment.It’s interesting to note: 46 % of DAX performance came from dividend distributions.”
I hope this post help you a little bit.