DEGIRO core selection of ETFs: all you need to know

What is the DEGIRO core selection of ETFs?

DEGIRO's core selection is a collection of over 1,000 ETFs that you can trade for only a €1 fee per trade. For ETFs outside of the core selection, the fee is €3 and you have to pay a yearly connectivity cost of €2.50 per exchange.

The biggest limitation of the core selection is that you need to buy the ETFs on the Tradegate exchange. As we'll see below, there are a few things you need to be careful with.

How to buy an ETF in DEGIRO's core selection

We'll walk you through buying VWCE, one of the most popular ETFs in DEGIRO's core selection.

Choose the Tradegate exchange

ETFs are traded on stock exchanges, which is a place where buyers and sellers meet. Famous ones are the New York Stock Exchange (NYSE) or Nasdaq, or XETRA and Euronext Amsterdam in Europe. The same ETF usually trades on several exchanges. But in order to get the lower €1 fee, you need to buy your core selection ETFs on Tradegate.

As you can see in the image below, VWCE trades on both XETRA and Tradegate. You must choose Tradegate.

Buy the ETF

In the next screen, select the number of shares you wish to buy. Note that you can only buy whole units of shares. DEGIRO does not support fractional shares. So you'll need to calculate how many shares you can buy, based on how much you want to invest and the amount you deposited on your DEGIRO account.

You also need to choose the type of order. The most common types are market orders and limit orders. A market order is an order to buy immediately at the best available current price. It prioritises execution speed over price, and it is typically filled quickly as long as there are enough sellers in the market. After all, remember that you're buying the ETF off of someone who wishes to sell his. Due to market fluctuations, the final execution price may be different from the price when the order was placed. A limit order, on the other hand, is an order to buy at a specific price or better. You can set a predetermined price at which you want to execute the transaction, offering you more control. Unlike market orders, limit orders are not guaranteed to be executed immediately or even at all, as they depend on the share price reaching the specified price.

Once you’re ready, click “Place order”. Congrats, you just bought your ETF on DEGIRO!

Best ETFs in the core selection

With over 1,000 ETFs available in their core selection, it's difficult to know which ones to pick for your investment portfolio. We selected the best ETFs that we consider the best according to our criteria:

• Diversified across many sectors and countries. The basic idea behind diversification is to avoid having all your eggs in one basket. This way, the impact of a single negative event is reduced. For example, if you only holds stocks from one sector and that sector experiences a downturn, the entire investment portfolio will be negatively impacted. However, if you had invested in ETF that diversifies across different industries, the impact of the downturn on the portfolio would be less severe.
• Low-cost. Most ETFs are already low-cost compared to active funds. But when we have the choice between several ETFs tracking the same index, we prefer a cheaper one (all other things being equal).
• Domiciled in Ireland or Luxembourg. Both countries have special tax treaties with many countries around the world. This makes it fiscally advantageous to invest in ETFs domiciled in Ireland or Luxembourg. You can recognise these by their ISIN code that starts with "IE" (Ireland) or "LU" (Luxembourg).

To illustrate the diversification of an ETF, we provide you with the number of companies in each ETF as well as all the countries it invests in. The cost of an ETF is measured through the "total expense ratio", or TER. It's the yearly cost that the fund provider charges for managing the fund, and it's a percentage on your total investment.

The overview

Below, find a table of the top ETFs in DEGIRO's core selection.

Read on for the full details!

iShares Core MSCI World Accumulating (IWDA)

The iShares Core MSCI World ETF, offered by iShares (a brand of BlackRock), tracks the MSCI World index, an index that consists of about 1,500 stocks from 23 countries that economists qualify as "developed": United States, Germany, Japan, United Kingdom, Australia…

It's also commonly known under its ticker IWDA. Investing through this ETF means you're investing in a wide segment of the global economy. Because it's so diversified, many investors choose to simply invest in this one ETF as their entire portfolio. This is also not surprising given that the MSCI World index has delivered a staggering 10.1% average yearly return since 1978:

Vanguard FTSE All-World Accumulating (VWCE)

Most commonly known under its ticker VWCE, the Vanguard FTSE All-World ETF continues to be a popular ETF for European investors. We believe its inclusion in the DEGIRO core selection is the main reason for its popularity! The fund, launched by Vanguard in 2019 to track the performance of the FTSE All-World Index, currently holds more than €11 billion under management.

It's composed of approximately 3,300 stocks. And because it's so diversified, investors can find in VWCE a great way to follow the market and hold a significant portion of the world's stocks. Stocks such as Apple, Microsoft, Amazon, etc… are represented in the fund. The FTSE All-World index has returned an average of about 8.4% per year since 2005:

Vanguard S&P 500 Distributing (VUSA)

A trending ETF amongst DEGIRO investors is the Vanguard S&P 500 ETF. S&P 500 stands for the Standard & Poor’s 500 index and as the name suggests, it seeks to track the performance of an index composed of the 500 largest American companies (even though it holds 503 companies at the moment). Through the S&P 500, you get exposure to a large section of the US economy as it covers 80% of the total American market capitalisation.

It's important to note that the ETF is distributing, meaning it pays out dividends to you in cash, usually every quarter. If you're saving for your future, we do prefer accumulating funds over distributing funds. In some countries, distributing funds are also fiscally less optimal than accumulating funds.

As you can tell from the graph below, the S&P 500 has returned an average 10.5% per year since 1992. That’s quite a significant return on your investment if you began your investment journey in the early 90's. It outperformed both the MSCI World index and the FTSE All-World index that we saw earlier, which is a testament to the exceptional economic performance of the United States the last few decades. Naturally, the question is if that trend will persist the next decades!

iShares NASDAQ-100 Accumulating (CNDX)

Shares also has a good ETF that tracks the Nasdaq-100 index. This index consists of 100 companies that are classified as technology companies. Industries such as hardware, software, telecommunications and biotechnology make up the index, and all major tech companies like Apple, Google, Microsoft and Tesla are in it.

Note that an investment in the Nasdaq-100 lacks diversification. It focuses so heavily on the American tech industry. In fact, the Nasdaq-100 makes up only 15% of the global stock market. Tech stocks have seen incredible returns the last 20 years. But the past does not guarantee future returns. And it's a real possibility that this scenario won't repeat itself over the next 30 years.

Having said that, a €10,000 investment in the Nasdaq-100 in 2007 would have resulted in almost €90,000 in 2022. That's a staggering 16.1% average annual return:

The drawbacks of the DEGIRO core selection

The largest limitation of the DEGIRO core selection is that you have to buy and sell your ETFs on the Tradegate exchange. Tradegate Exchange offers long trading hours and access to thousands of stocks and ETFs. But before placing your next order there, it’s important to understand a few risks that could cost you money.

Wider spreads outside business hours

Tradegate is open from 07:30 to 22:00, longer than most European exchanges. However, spreads, which is the difference between the buy and sell price, are much wider outside regular market hours. This means you might pay more when buying or receive less when selling. If you want to trade on Tradegate, do it during regular European business hours, typically 09:00–17:30. That’s when liquidity is higher and prices are usually fairer.

Avoid market orders without a limit

On Tradegate, prices can move quickly, especially if trading volumes are low. If you place a market order without a limit, your trade might execute at a worse price than expected. Always set a limit order so you know the maximum price you’ll pay when buying or the minimum price you’ll accept when selling. It gives you control and protects you from unexpected price jumps.

Be cautious with larger trades above €2,000

Research by BaFin, the German financial regulator, found that small trades (under €500) can be slightly cheaper on Tradegate compared to reference exchanges like XETRA. But for larger trades (above €2,000), Tradegate often becomes more expensive, even after factoring in DEGIRO’s lower transaction costs through the core selection. So if you’re investing larger amounts, it might be worth comparing prices with other exchanges before executing your trade.

Why ETF investing through DEGIRO is challenging

DEGIRO is a cheap broker that gives you access to thousands of ETFs. But good investing is more than trading.

Managing your own investments through DEGIRO

When you invest through a broker like DEGIRO, you’re fully in charge. You decide what to buy, when to buy, how to rebalance, and how to keep your portfolio aligned with your goals and risk tolerance. It can be rewarding, but it also comes with a fair share of challenges.

Building your portfolio

The allocation of your portfolio is entirely in your hands. You need to figure out how to build the right mix of ETFs that suits your long-term goals. That means researching which funds to include, understanding how much risk you’re comfortable taking, and making sure your portfolio remains balanced over time.

Doing your homework

Getting started with ETFs isn’t as straightforward as it may seem. You’ll need to understand how ETFs work, what the different terms mean, and which ones fit your strategy. In investing, the details matter, and small mistakes can add up over time.

It takes time

Each month, you have to transfer money to your DEGIRO account and place your orders manually. Unfortunately, you can’t automate these investments. What starts as a fun habit can quickly turn into a chore.

Monthly investing can be costly

If you want to invest monthly, transaction costs can add up. DEGIRO charges a fee per trade, and since you can’t buy fractional shares, you’ll often be left with small amounts of uninvested cash sitting in your account. Over time, these inefficiencies can eat into your returns.

Rebalancing your portfolio

If you hold multiple ETFs, you’ll need to decide how and when to rebalance your portfolio. Will you do it quarterly, yearly, or only when things drift too far from your target allocation? There’s no single right answer, but it requires planning and discipline.

Tracking your progress

Keeping track of your portfolio’s performance often means setting up your own spreadsheet. DEGIRO’s tools are limited, so you’ll have to monitor your holdings and returns yourself.

Understanding taxes

Taxes can be tricky, especially in Belgium and across Europe. You need to stay informed about tax rules, which not only vary by country but also change over time.

Staying disciplined

Managing your own portfolio means staying calm when markets are volatile. It takes confidence and discipline to stay the course and not react emotionally to short-term price movements.

Brokers want you to trade

Most brokers make money when you trade, not when you hold. So a passive investor isn’t their ideal customer. Their apps often encourage activity by showing the biggest daily movers or “trending” stocks, which can tempt you to make impulsive decisions.

DEGIRO’s app can be confusing for beginners

Finally, DEGIRO’s interface can feel intimidating if you’re new to investing. There’s a lot happening on every screen. You’re presented with various types of securities (turbos, warrants, stocks, ETFs) and different order types like market, limit, or stop-loss. All these options require you to know exactly what you’re doing before placing a trade.

Curvo: an easier alternative to DEGIRO for ETF investing

Choosing an ETF is not the end of the story: it's a small part of building a portfolio that will give you success over the long term. Defining the right portfolio is probably the most important and most difficult task for every investor. The composition of your portfolio is dependent on goals, your appetite for risk, your age and your income. We understand this difficulty, along with the many other subtleties investors have to deal with in order to be successful over the long term.

As we've seen, investing in ETFs through a broker is not always straightforward. We understand that this can be daunting, especially for someone who's just starting to invest. Curvo was built to take away all the complexities of investing in index funds. No need to search through thousands of ETFs or scour wikis in order to understand how to select a fund. Through Curvo:

• Invest in a portfolio tailored to you: based on a questionnaire, the right mix of funds is selected for you that correspond to your goals and appetite for risk.
• Invest securely: your investments are managed by NNEK, a Dutch investment firm that is overseen by the Dutch regulator (AFM).
• Set up a savings plan: put your savings on autopilot. Choose an amount and it will automatically be invested every single month.
• All your money is invested: in contrast with the majority of brokers, your investments through NNEK support fractional shares. This means that all your money is put to work. There will never be cash sitting on your account doing nothing.
• No entry or exit fees: there are no transaction fees, entry or withdrawal fees.

Learn more about how Curvo works.

How Curvo compares to investing through DEGIRO

You can follow the steps above and buy ETFs through DEGIRO. However, if:

• you're worried of making a mistake when investing
• you don't want to handle the taxes
• you don't want to spend time choosing a broker
• you don't want to spend time making the trades
• you don't want to figure out a rebalancing strategy and execute on it
• you want fractional shares
• you want peace of mind that your investments are taken care of

...then you're welcome to use Curvo!

What you should do now

1. Figure out which ETF you want to buy from DEGIRO's core selection.
2. Double-check you're buying it on the right exchange and also that you're adhering to their fair use policy.
3. If you're a bit overwhelmed with DEGIRO, explore Curvo as a real alternative.

Conclusion

The core selection makes ETF investing cheaper through DEGIRO, especially if you're buying popular funds like VWCE or IWDA. You'll pay just €1 per trade instead of €3, which adds up if you're investing regularly. But don't forget the trade-offs. You're limited to Tradegate, you need to time your trades carefully, and you're responsible for everything from portfolio construction to rebalancing.

If you're comfortable taking full control and have the time to manage your investments, the core selection can work well for you. But if you'd rather focus on your goals while someone else handles the details, you might want to look at options like Curvo that simplify the process. The best choice depends on how hands-on you want to be with your money.