I wouldn't use DMAX to lessen my overall portfolio equity risk. I think there is a well established, cheaper and more transparent ways to accomplish this by setting an appropriate-for-you stock/bond/cash allocation, and then use low cost, fully understandable funds to do this. I view funds like DMAX as expensive gadget funds that no one recommends except those promoting them. I'm wondering how you decided to buy it?
By the way, you may say that DMAX isn't all that expensive with its .50% management fee. However, what they don't say explicitly is that they are also taking off the top all the dividends from the stocks the fund holds. That is an extra 1.3% that goes to them in addition to the .50%. So I'd say it would be more accurate to call the mgt fee approximately 1.8% They divulge this in the legally accurate but intentionally unclear way that all complicated investment and insurance products are marketed. In this case they say:
" INVESTMENT OBJECTIVE
The Fund seeks to track the share price return of the iShares Core S&P 500 ETF (the Underlying ETF) up to an approximate upside limit...." .
The "share price return", which they don't define, is the stock's return without dividends. Share price return plus dividends is the Total Return.
By the way, you may say that DMAX isn't all that expensive with its .50% management fee. However, what they don't say explicitly is that they are also taking off the top all the dividends from the stocks the fund holds. That is an extra 1.3% that goes to them in addition to the .50%. So I'd say it would be more accurate to call the mgt fee approximately 1.8% They divulge this in the legally accurate but intentionally unclear way that all complicated investment and insurance products are marketed. In this case they say:
" INVESTMENT OBJECTIVE
The Fund seeks to track the share price return of the iShares Core S&P 500 ETF (the Underlying ETF) up to an approximate upside limit...." .
The "share price return", which they don't define, is the stock's return without dividends. Share price return plus dividends is the Total Return.
Statistics: Posted by geetzromo123 — Mon Jan 20, 2025 6:06 pm
