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New benchmark and new tiered charges for Think ETFs

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January 17th saw Think ETFs change the benchmark of its Think Global Real Estate ETF to the GPR Global 100 Index.


January 17th saw Think ETFs change the benchmark of its Think Global Real Estate ETF to the GPR Global 100 Index.

The firm writes that this index was developed by Global Property Research which is a subsidiary of Kempen & Co. The index consists of 100 globally diversified real estate stocks and offers enhanced diversification with respect to the previous index which consisted of 25 real estate stocks, the firm explains.
 This market capitalisation weighted index offers exposure to various real estate sub-sectors such as Retail, Residential, Offices, Industrial, Health Care, Diversified and the Specialised REIT-sector.

Martijn Rozemuller, Managing Director of Think ETF’s says: "With the introduction of this new index as a benchmark for our Think Global Real Estate UCITS ETF we offer our investors increased diversification at the same low cost."

The firm writes that the ETF remains the lowest priced European domiciled ETF offering exposure to global listed real estate. The Ongoing Charges Figure (OCF) is 0.25 per cent.

Think ETFs has also introduced a tiered fee structure for its Think Global Equity UCITS ETF with an Ongoing Charges Figure (OCF) of 0.20 per cent since its introduction in 2011.

Meanwhile, the ETF has passed the EUR500 million mark and to enable investors to profit from this increased economies of scale, Think ETFs writes that it will reduce the cost ratio by means of a tiered fee model. As the ETF grows, the costs charged by the ETF will be reduced.

“This will positively affect the performance of the ETF. Although tiered fee structures are common in institutional relationships, this is the first time this structure is applied to an ETF.

“Over the first EUR200 million Assets under Management (AUM), 0.20 per cent will be charged. Over the next EUR200 million, 0.17 per cent will be charged. When the fund assets exceeds the EUR400 million mark, 0.15 per cent will be charged over the excess AUM. When EUR1,000 million in AUM is reached, 0.13 per cent will be charged over the excess AUM. Based on current AUM 0.18 per cent will be applied.”

Martijn Rozemuller, Managing Director of Think ETF’s says: "The Think Global Equity ETF has seen strong growth in recent years and with the introduction of this fee structure, we would like to let our investors benefit from this growth."

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