TOPX
Xtrackers Nikkei 225 UCITS ETF 1D
Published by Radif Partners · Updated
Overview
Xtrackers Nikkei 225 UCITS ETF 1D (TOPX) tracks the Nikkei 225 index and holds its constituents directly, a physical replication managed by Xtrackers. Dividends are paid out to holders rather than reinvested, so TOPX suits investors seeking regular income. The fund is domiciled in LU, which determines the withholding tax treatment applied to its dividends. Annual charges come to 0.09% of assets, and the fund holds 2.0B under management. It is not eligible for the French PEA, but can be held in a securities account, a UK ISA or a German Depot. Its risk level is rated medium. Launched on 2013-01-15, the fund is denominated in JPY and has 13 years of track record. It is a UCITS fund, so it follows the European framework on diversification, liquidity and asset segregation. Because TOPX distributes, every payment is taxable in the year it is received, against the dividend allowance in a general account, while it stays sheltered inside an ISA or a SIPP. Domicile in LU sets the withholding the fund itself suffers on the dividends it receives, a cost absent from the stated fee but present in the return.
Ongoing charges of 0.09% place this fund 42th of 225 comparable funds, whose median is 0.20%. On £10,000 that costs about 9 a year and 90 over ten years at a constant amount, deducted daily and never visible on a statement: it shows up in the gap between the fund's return and its index's. At this level, neither low enough to be an argument nor high enough to be an obstacle, the decision rests elsewhere: on the index tracked, on the distribution policy, and on what your broker charges to buy.
Replication is physical: the fund actually holds the constituents of Nikkei 225, which makes its contents verifiable line by line in the issuer's report. Two points deserve attention. Securities lending first, practised by most physical funds to reduce costs: it earns a few hundredths of a point and creates an exposure to the borrower, covered by collateral, with the annual report stating the proportion lent. Rebalancing second: every change in the index's composition forces the fund to buy and sell, and those internal costs are not in the 0.09% headline. That is why two funds at the same price do not track their index with the same fidelity.
The domicile, Luxembourg, is not an administrative detail: it determines the withholding tax the fund suffers on the dividends it receives, and that loss appears in no fee table. Luxembourg has a comparable treaty network but is not as favourable as Ireland on US equities, a difference visible on a world index and not on a European one. For the holder, the UCITS framework also brings the key information document in their own language, diversification rules, and separation of the fund's assets from the issuer's.
Income is distributed: the fund pays out the dividends it receives, usually one to four times a year. For a holder living off the portfolio that is what is wanted, since the income arrives without selling. For someone still accumulating it is a tax disadvantage in a taxable account: each payment is taxed in the year received, so the amount reinvested is reduced before it starts working again. Reinvesting by hand also costs a dealing commission each time and often leaves cash idle for want of the price of a whole unit. An accumulating class on the same index, where one exists, settles the question.
With 2.0 billion in assets and 13 years of history, this fund has the size and the record that make closure unlikely and the spread narrow. Three checks remain, once a year, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of Nikkei 225, which can change its selection or weighting rules without the fund's name moving, in which case what you hold has changed with nothing to announce it.
Nikkei 225 is a broad index, and that is the building block most portfolios have reason to own before any other, for a simple reason: it requires no forecast. Two points deserve checking before calling it diversified. Cap weighting concentrates the portfolio on the largest companies, so the top ten holdings can make up a substantial share, and that concentration grows without any rule changing. And the geographic scope matters: a developed-world index leaves out emerging markets, while a broad US index is not global exposure despite the international revenue of the companies it holds.
The published returns for this fund are incomplete, and that is itself information: without a multi-year record, the only available check is the structure, the 0.09% ongoing charge, 2.0 billion in assets and the replication method. A recent or little-followed fund is not a bad fund for that reason, but it can only be judged on what is known in advance rather than on what it has done.
0.09%
2.0B
2,000M JPYMedium
161
Physical
Distributing
JPY
LU
Nikkei 225
Xtrackers
2013-01-15 (13 years)
Contextual Analysis
Fund Size
With 2.0B in assets, this is a large fund, good liquidity and tight spreads.
Fee Positioning
A TER of 0.09% is among the lowest on the market, excellent value.
Track Record
Launched in 2013-01-15, this fund has 13 years of history, long and reliable track record.
Risk Profile
Medium risk, good risk/return balance for a 5+ year horizon.
Performance
Returns Summary
| Period | Ann. Return | Cumulative |
|---|---|---|
| 1 Month (est.) | – | – |
| 3 Months (est.) | – | – |
| 6 Months (est.) | – | – |
| YTD (est.) | – | – |
| 1 Year | – | – |
| 3 Years | – | – |
| 5 Years | – | – |
| Since inception (13y) | – | – |
Key Facts
Fund Profile
Themes & Zones
Holdings
Risk
How to Buy This ETF
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About this ETF
The Xtrackers Nikkei 225 UCITS ETF 1D tracks the Nikkei 225 index. It is managed by Xtrackers using physical replication and follows a distributing distribution policy. The fund is denominated in JPY and domiciled in LU. It has a total expense ratio (TER) of 0.09%.
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Frequently asked questions
What do TOPX's 0.09% charges actually cost?
They are taken from the fund's value continuously and never billed separately: on £1,000 invested that is about £0.90 a year and roughly £9 over ten years at a constant amount. That is the only cost of the fund itself. Your broker's commission and the spread between buying and selling price come on top, and they weigh most on small frequent purchases.
What should you re-check on TOPX once a year?
Three things, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of Nikkei 225, which can change its selection or weighting rules without the fund's name moving: in that case what you hold has changed with nothing to announce it.
Does TOPX lend out the securities it holds?
Probably in part: most physical funds lend securities to reduce their costs, and Xtrackers publishes the proportion in the annual report. Lending income is worth a few hundredths of a point, shared between the fund and the issuer. The risk is the borrower's, covered by collateral worth more than the amount lent, and it appears in the prospectus rather than in the stated fee.
Why does TOPX's Luxembourg domicile matter?
Because it determines the withholding tax the fund suffers on the dividends it receives, and that loss appears in no fee table. Luxembourg has a comparable treaty network but is less favourable than Ireland on US equities. The UCITS framework also brings the key information document in your own language.
Does TOPX pay dividends?
Yes: the fund distributes and pays out the dividends it receives, on a calendar set by Xtrackers. The payment is taxable in the year you receive it in most accounts, even if reinvested at once, and reinvesting by hand costs a commission each time. An accumulating class on the same index avoids that friction for anyone who does not need the income.
This ranking is for informational purposes only and does not constitute a recommendation to buy or sell any security. Displayed performance is simulated.