ETF

YOUR QUESTIONS - ANSWERED

• What is Lunar?

  Lunar is a digital bank without any physical branches. Yet we offer all the services you associate with a traditional bank; that being accounts, Visa cards, payment transfers, loans, MobilePay, Apple Pay, Google Pay, etc. On top of that, we provide the best banking app experience in Denmark, where it’s safe and easy for you to manage your finances. Directly from your smartphone.

  The app provides you with all the features you’ll need to get the most out of your money. We offer you new ways of keeping track of your expenses, interactive budgets, and notifications every time you spend money. You’ll avoid any payments and transaction fees, too. On top of that, you’ll design your own Visa card. Getting a card and an account is free.

  We have more than 500,000 users in the Nordic region, and we have offices in Aarhus, Copenhagen, Stockholm, and Oslo. Our +450 employees work every day to give our users the best possible bank.

• Do I need to switch banks to get Lunar?

  No, you don’t have to switch from your current bank to use Denmark’s best banking app. You can choose Lunar as your primary bank or use it as your secondary if you don’t wish to shift from your current one. You can also connect your current bank account to Lunar. Try Lunar now – it’s 100% free and non-binding.

• What's an ETF?

  An ETF is a fund with a broad array of businesses who are traded on a stock exchange. ETFs can be segmented into what the businesses specialize in (e.g. green energy) or the businesses size (e.g. the 500 largest businesses in the USA)
  
  

• Why are ETFs so popular?

  It's becoming more and more popular to invest in ETFs, and there are several reasons as to why:

  • It's easy to buy and sell ETFs because you can invest whenever the market is open
  • You will spread out your risk quickly, which would take a long time to achieve if you purchase single stocks
  • The costs are lower than e.g. traditional mutual funds

  An ETF is also a simple opportunity for first-time investors. Choosing stocks and industries can be a challenge for many investors.

• How are ETFs taxed?

  When you trade ETFs you need to be aware of taxes. But don't fret - it's not as hard as it may sound. ETFs are taxed after the inventory principle. This means that you have to pay taxes off your yield annually - thus, not when you sell the ETF. If your ETF has yielded loss a given year, you can likewise deduct it from your taxes.
  There are two types of taxation under the inventory principle: stock taxation and capital income taxation.
  Stock taxation means that the ETF has a tax rate of 27% up to the first 55.300 kr., you get in income in equity, and that amounts over 55.300 will be taxed with 42%.
  With capital income taxation, the ETF will be taxed according to your capital income - between 37 and 42%, depending on what you pay in taxes.
  

  It's easy to see how much you will be taxed from each ETF in the Lunar app