"Subscribers may be interested in a recent experience of mine in relation to ETFs. Wishing to take advantage of the Indonesian market, I found recently that Deutsche Bank had issued a new ETF for Indonesia: DB-X Trackers MSCI Indonesia, XMID.

"I duly purchased XMID on 21 June at £10.29. I was therefore surprised when on the 29 June the ETF fell to £9.50 and thence on the 30th June to £8.00, a loss of perhaps 22%.

"When I checked the Indonesia index on FM, I saw that this had experienced a much smaller decline.

"I challenged Deutsche to explain. To their credit, they have today acknowledged that "bid and offer prices for the ETF were mis-quoted by Deutsche Bank in its role as market maker on the London Stock Exchange for a period of 2 weeks.". They have offered compensation to any retail client that can show (via their broker) that they were misquoted on the retail price. I am duly following through to obtain recompense.

"While I am pleased that Deutsche are dealing with this situation positively, it raises the interesting question as to why it took a fairly innocent retail investor - me - to point out the problem. One would hope that some form of regulation would have obliged Deutsche to announce their error and be required to contact all retail investors who were disadvantaged.

"Two price charts attached [Indonesia Index & XMID Tracker].

"I'd be interested in your comments."

David Fuller's view Thanks for this information, and what an unsettling experience for you, to put it mildly.

My initial reaction is to feel relief that you saw the problem, queried it, and that Deutsche Bank is "dealing with this situation positively", as we would hope and expect. Regulators may not know about it but they would have been your next contact, presumably, if Deutsche Bank had not responded positively.

Trackers usually report a "Tracking Error" percentage but this section on Bloomberg has "n.a." beside it. You can see from your charts above and also this 'Description' page from BBG that the price discrepancy persists. I also note that the volume for XMID is minimal and that it does not trade every day. It might be a good idea to make sure that new trackers have some reasonable volume before considering them.

How very fortunate that you did not have a leveraged position or a stop, as that could have been messy.