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If I was about to buy some LU0508799334, hold them for a while (ideally about 20 or 30 years) and then sell them again, could that be problematic?

Its KIID specifies that the costs of buying or selling it would be 3%, but at least 5000 EUR, and it also specifies its share class as "Anteilklasse I D" which usually means Investment grade.

But on the other hand, this ETF seems to be for sale on many platforms through exchanges, but also through the partners of these platforms (Quotrix, Baader Bank, Tradegate etc.). For example, on justetf.com, it is listed as "savings plan ready", and onvista.de offers me to buy it via the said platforms.

  1. How does that match? Probably these platforms hold some of this ETF, buy and sell them, and if needed, they buy/sell a big number of them to the issuer, dividing these 5000 € over a big number of ETF shares.

  2. If I intend to sell them in 20 or 30 years, will I be able to do so without unexpectedly having to pay this high amount?

Especially, I worry about the following situation:

  • The issuer decides to withdraw the ETF
  • I don't get this information in time, eventually try to sell it at an exchange, and fail to find a buyer. In this case, I might be left with selling it to the issuer, leaving with a fee which eats up all my money.

But I guess even then there will be market participants which buy them at a price discount of (maybe) 4 or 5 % and return them "in bulk" to the issuer.

Am I right to be worried, or is it "safe" (for a reasonable definition of safe in the context of investments) to buy it?

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    Interestingly, meanwhile, justetf reads: This fund has been liquidated or merged. Consequently, no fund information is updated anymore. For more information about the fund, please contact the fund provider. Your issue was justified. Commented May 9, 2021 at 21:32
  • @BernhardDöbler Thank you for the update. I tried to find a notice from Lyxor when or why that happened. Last year, they had it in the rename list where they renamed the ComStage ETFs (whose issuer they bought and merged with) to Lyxor, and some ETFs were merged as well, but I cannot find any notice whether that ETF was indeed merged and what would have happened in my case.
    – glglgl
    Commented May 10, 2021 at 5:59

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The information that you linked to specifically states, that the agio/disagio is 0% for trades via an exchange.

So, yes, this should only be relevant if you wanted to buy the shares directly from the issuer.

Anyone having bought this ETF from the issuer - and thus having paid this surcharge - will have added these charges to their respective sell prices. Your assumption unter No. 1 is likely correct: The costs are just devided among a lot of shares.

As with any stock, you will be able to sell these ETF shares, if you are able to find someone who wants to buy them. - No charges, except for your trade at the exchange.

BUT: Should you not be able to find someone to buy, and need to return the shares to the issuer, you will have to pay the 3 percent, or 5.000 Euros, whatever is higher.

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  • Thanks. So vor the "average guy", is it rather dangerous to buy them, or is it rather unlikely that something described happens? As, usually, the "authorized participants" are usually those who really sell these ETFs at the exchange, and the way of returning them directly to the issuer is quite unlikely. Am I right?
    – glglgl
    Commented Feb 4, 2020 at 8:37
  • @glglgl Q: Why would anyone want to buy your shares? A: Because they expect them to appreciate in value. - There are several possible reasons for that not being the case. One class of these reasons is - in my opinion - irrelevant, because they represent large scale economic effects, which would lead to you losing money everywhere, except if you were bartering food for other people's valuables to cash in after the crisis is over. The other class is a failure of the fund - for which I'd like to refer to this resource. Commented Feb 4, 2020 at 9:42
  • Thank you. What I had in mind is the scenario: The fund issuer decides to withdraw the ETF, I don't get this information in time, eventually try to sell it at an exchange, but no one will buy it any longer. In this case, I might be left with selling it to the issuer, leaving with a fee which eats up all my money. But I guess even then there will be market participants which buy them at a price discount of (maybe) 4 or 5 % and return them "in bulk" to the issuer.
    – glglgl
    Commented Feb 4, 2020 at 10:24

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