ETF BankWest Top 200 Index Fund - thoughts?

Discussion in 'Shares & Funds' started by Tronc, 18th Jan, 2008.

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  1. Tronc

    Tronc Member

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    ACT
    Hi there

    I have been reading about ETFs and Mngd Funds on this site and wanted to know what feedback might be on BankWest's offering. Details at: Top 200 Shares - a low-cost index fund

    I have attached the PDS as well, so save anyone having to download it.

    Is this just a fancy bank product trying to do the same thing as some of the ETFs. How does the 0.98% management fee compare in the market. Just seems to be an interesting offering and would welcome some other thoughts.

    Thanks. Tronc
     

    Attached Files:

    Tronc, 18th Jan, 2008
    #1
  2. samaka

    samaka Well-Known Member

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    Minimum Investment:
    BW - $5000 (or $2500 with $100 p/m)
    STW - $500

    MER:
    BW - 0.98%
    STW - 0.28%

    Withdrawals
    BW - Via post
    STW - On ASX

    STW already has 70% gearing available through lenders like Commsec.

    STW gets my vote for the time being.
     
    samaka, 18th Jan, 2008
    #2
  3. AsxBroker

    AsxBroker Well-Known Member

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    Hi Tronc,

    I agree with Samaka.
    0.98% pa is a bit expensive for an index...

    Like Samaka said, I'd be leaning towards an ETF if it's what I was looking for.

    Cheers,

    Dan

    PS Before making an investment decision speak to your FPA registered Financial Planner.
     
    AsxBroker, 18th Jan, 2008
    #3
  4. AsxBroker

    AsxBroker Well-Known Member

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    Hi Tronc,

    Page 16 explains why it is such a high MER...

    Up to 65% of the Administration Fee can be paid to BankWest and the Administrator for Marketing and Distribution Services...

    Does this mean branches? :p

    Cheers,

    Dan

    PS Before making an investment decision speak to your FPA registered Financial Planner.
     
    AsxBroker, 18th Jan, 2008
    #4
  5. Andrew Allen

    Andrew Allen Well-Known Member Business Member

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    That is a very rich MER for an index fund, at least they are honest about why it's expensive. Gotta pay for their marketing.
     
    Andrew Allen, 19th Jan, 2008
    #5
  6. arandomperson

    arandomperson Member

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    Yeah I pondered this in a blog article which links to a thread on aus.invest which has some good comments on this one last year:
    A Random Person’s Random Investments » top200 shares fund
    essentially the Vanguard fund, or STW beat it in every possible way, and it appears to depend on the customers not being aware of the costs of features of any other index funds.
     
    arandomperson, 20th Jan, 2008
    #6
  7. MJRoss

    MJRoss Member

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    If only more Australians took notice of fees like you lot...
     
    MJRoss, 22nd Jan, 2008
    #7
  8. Norak Bastiat

    Norak Bastiat Well-Known Member

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    Definitely expensive. Essentially top 200 is the same as the Vanguard Aussie Shares Fund, which tracks the top 300 but Vanguard's MER is 0.70% and if you have over $100,000 then it's 0.35%

    STW is still cheaper though.

    If you're dollar-cost averaging, use Vanguard. If you're putting it all in at once, use STW.
     
    Norak Bastiat, 5th Feb, 2008
    #8
  9. Andrew Allen

    Andrew Allen Well-Known Member Business Member

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    Does anyone have any tracking error stats for STW?
     
    Andrew Allen, 5th Feb, 2008
    #9
  10. samaka

    samaka Well-Known Member

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    What do you want? Try:

    SPDRs
     
    samaka, 5th Feb, 2008
    #10
  11. Redwing

    Redwing Well-Known Member

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    I thought Vanguards MER was a lot lower for VAS (at around 0.27%):confused:

    STW was around 0.286%
     
    Redwing, 17th Aug, 2012
    #11