ETF v praxi
How to Find and Evaluate an ETF on justETF Step by Step
Key takeaways
- justETF offers filters for UCITS status, domicile, TER, fund size, and replication type — always start with these parameters.
- A TER below 0.30% per year is a good benchmark for passive index ETFs; a lower TER does not always mean better performance.
- Tracking difference (TD) is more precise than TER — it shows the actual performance gap between the fund and its index.
- An accumulating ETF is more advantageous for most investors: dividends are reinvested automatically and the tax obligation is deferred.
- A fund with AUM below €100 million carries the risk of being liquidated — prefer larger funds.
justETF is a free European screener that gives you all relevant data on any ETF in 10 minutes — from TER and fund size to historical tracking difference. Here is the step-by-step process.
Step 1: Set the initial filters
Open justETF.com and go to "ETF Screener". Set these basic filters straight away:
- Fund domicile: Ireland — Irish domicile ensures a UCITS structure and favourable tax treaties. ISIN starts with "IE".
- Fund currency: EUR or USD — the fund currency affects how the performance history is displayed, not the actual currency risk.
- Replication: Physical preferred — physical replication (full or optimised) is more transparent than synthetic.
- TER: max 0.50% — sufficient for an initial filter; you will compare specific figures at a later stage.
Step 2: Review the fund detail page
After clicking on a specific ETF, go to the "Returns" tab and then "Tracking Difference". TER is the declared cost ceiling stated by the fund. Tracking difference (TD) is the actual performance gap between the fund and its benchmark over the past year. Funds with a negative TD outperform the benchmark — this happens thanks to securities lending. TD is a more precise figure than TER alone.
Step 3: Verify fund size and age
On the fund page, find the AUM (Assets under Management) figure. Funds below €100 million in AUM carry a higher risk of being closed or merged with another fund — you would then receive a payout and need to reinvest, triggering a taxable event. Prefer funds older than three years and with AUM above €300 million.
Step 4: Choose accumulating or distributing share class
Almost every popular ETF has two variants. Accumulating (Acc) automatically reinvests dividends — suitable for the growth phase; it defers your tax return. Distributing (Dist) pays dividends to your account — suitable if you want cash flow. For a passive investor the accumulating variant is generally simpler. Read more in the article accumulating vs. distributing ETFs.
What you won't find on justETF
justETF will not tell you whether a given ETF suits your goal and time horizon. Before you buy, also read how to build your first portfolio and confirm that the fund matches your strategy, not just a low TER.
FAQ
Is justETF free?
The basic screener and fund details are free. The paid justETF Premium version adds advanced comparison features, a portfolio tracker, and alerts. The free version is fully sufficient for selecting ETFs.
What is tracking difference and why is it better than TER?
Tracking difference measures the actual performance gap between the fund and its benchmark over the past year. TER is the declared cost ceiling, but a fund can have income from securities lending that reduces TD or even turns it negative — meaning the fund outperforms the index.
How do I recognise that an ETF has Irish domicile?
The fund's ISIN starts with the letters "IE". On justETF you'll find the column Fund Domicile: Ireland. Irish domicile is key for European investors because the Ireland–US tax treaty reduces withholding tax on US dividends from 30% to 15%.