ETF merger handling
planned
O
Oliver
Example transfer of key figures ETF 110 to ETF 018 as part of a merger or transfer.
ETF 018 has replaced ETF 110 1:1 in terms of shares and share value; as of reporting date x, ETF 018 began to cease to exist.
The profit history was transferred to Comdirect or ING, for example, i.e. ETF 018 is an image of ETF 110 under a different name.
Parqet cannot map this according to the retailer - workarounds are necessary which, depending on the choice, falsify the IZF, for example.
Björn Beier
Merged in a post:
Change Parqet's approach when changing ISIN
P
PrivatierausP
Hello community
.. I noticed inconsistencies about parqet's system behavior when it comes to “ISIN switching”:
In terms of performance, the ISIN change is recorded - and simply canceled, apparently so far on the grounds that it is now another company..?
With “Price”, on the other hand, the ISIN change is recorded - and continues to be tracked, as it is still the same company properly.
However, since I, as a user, want to track the entire “life story” of my (one-time) investment, I simply vote to note the ISIN change in the master data set of the respective asset position in the timeline and in the data sheet (if necessary, show earlier ISIN as a bracket value, or via mouse hoovering)... and only track the position as an asset.
In other words:
In the end, a change of ISIN only means a change of “management number” - but it is still the same company and therefore the life story should be kept consistently.
Not “to the new holding company” in activities... and not such inconsistencies in the chart chart, where, on the one hand, people pretend that the company no longer exists and at the same time the price trend continues even after the ISIN change.
Björn Beier
marked this post as
planned
Björn Beier
Merged in a post:
Fusion ETFs
M
Mario
I would like to suggest merging ETFs... Couldn't you create an additional option among the activities (merger exit and merger access)? I find the solution about selling and buying, or booking out and posting with the current presentation is a bit misleading. I would like an additional list of all merged ETFs and their increase in value or that the previous increase in value can be transferred to the receiving ETF. In this way, you would continue to have the correct distribution of share price profit and realized gains in the overall overview. Perhaps you have an opportunity to implement this technically here.
Björn Beier
marked this post as
in progress
A
Andre
Björn Beier Hi, is there any effort to do something about this desired feature?
Or will the workaround from below remain the only way to represent a merger of ETFs in the future?
F
Fabian
@ Björn Beier: It's just stupid that “Parqet Wrapped” is of no use to me for this and possibly the following years, because this “trick” with the conversion of ETF110 to ETF018 destroys all sorts of statistics. Don't you have a better solution to this day?
Björn Beier
Hi,
Your best solution in this case is the following:
You note down all shares and the entry price of your ETF110 securities position.
- You book the ETF110 security from your portfolio as of 21.04.23
- You book the ETF018 security with your listed number of units and your quoted entry price as of 21.04.23.
You can see what that looks like in a portfolio here:
Almost all key figures are retained in this way.
What doesn't change as a result?
- Invested value
- Introductory course
- Performance “since purchase”
- Performance in the performance chart
- Historical dividends/distributions
- The IZF calculated for the period from purchases to sales of the old security
What is changing as a result?
- The IZF is changing for ETF018 as ETF018 is regarded as a new security. The value calculation therefore starts from the day of the new login
- For partial sales, the temporary calculation is (up to the total sale!) According to the FIFO principle, it may be different from what you are used to in Parqet, but actually closer to the presentation of your broker.
The perfect solution here might be to map all old shares of ETF110 to ETF018, but please don't forget that this would also be an individual solution that does not correspond to the broker. If you want to view the ETF018 price history at ComDirect or ING, for example, you will only see prices from 21.04.23 here.
S
Steffen
Björn Beier: “[...] but actually closer to the presentation of your broker.”
-> Would like to argue against this: In the real brokerage world, if I bought my first share for €50 5 years ago (and then sold the first share for €70 today) and sell the first share today for €70, I still made a profit of €20, which I have to tax and not a hypothetical pseudo-profit of maybe €10, as shown in Parqet. Topic Footsteps Theory.
I've deliberately misunderstood your statement, of course: What you probably mean is that the graphs in the broker informers start the history of ETF018 on 21.04.2023. That is completely correct from the point of view of presenting the data, I am completely with you! However, that is not at all the problem that we would like to have solved - namely the correct calculation of performance, which is REALLY relevant to me as an investor and because of which I use Parqet. I don't think that the graphs make Parqet a top seller - any website I click on when I Google for “ETF018” can draw a graph.
By the way, justETF (https://www.justetf.com/de/etf-profile.html?isin=LU2572257124) simply combined the chart and dividends of ETF110 and ETF018... is that technically correct (best kind of correct)? No, probably not. But still the clearest solution in terms of footsteps theory.
R
R
Björn Beier:
You forgot to include in “What changes” that all performance graphs in which the sign in/out is located (except “Since purchase” - for whatever reason) are just wrong.
It looks something like this: https://app.parqet.com/p/6480569da26d383719ca2797 (3 month view)
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R
R
Please also take a look at the discussion here https://community.parqet.com/c/help/tausch-des-etf110-zu-etf018-durch-die-ing-diba.
The solutions offered either do not work (ETF018 has been reissued, it is not possible to map old ETF110 transactions historically to ETF018) or falsify the statistics (book/post in).
M
Mathilda Emmi
I absolutely need a suitable solution, for me the app is currently unusable with the frozen values from ETF110.
I hope the problem is addressed, as it won't be the first time that a merger takes place.