ETF Exchange Traded Funds (ETFs) 2017

I did suspect that it works like that. However, when I read it here and think a bit about this it's really eye-opening.

So, generally speaking, it looks like the dividend is not tightly coupled to share price and goes its own way.

 

Hi guys, a bit off topic here. What structure do you use to invest in shares? Do you just buy in own names or use something more complex like a family trust with a corporate trustee?

I'm not close to the retirement age and would love to retire earlier than the preservation age. Thus, SMSF is not an option for me. Would be grateful if you point me to the topic where this is discussed. Thanks!

 

Goes to show......money makes money.

pinkboy

 

There is some coupling (are you an architect?) - if the company goes bankrupt the dividend won't be very good.

In addition scenarios like BHP, which paid an apparently ever increasing dividend for a long time, which disintegrated with resource prices (I bet Peter Thornhill loves that srory).

However, in general dividends appear to increase over time. Confirm by checking the dividend history of the older LICs, oldest ETFs and the blue chips on the ASX.

 

Thanks @ErYan. Makes sense.

Not an architect (well, maybe software architect ).

 

I'm now using a family discretionary trust, which allows me to legally do what other countries, and Australia should, just legislate.

Important considerations:
- get it right at the start and avoid costs later on
- consider what happens if something happens to you
- get professional advice (a poster called Terry appears to be very knowledgeable )

 

Thanks @ErYan. Yes, @Terry_w knows his stuff.

I'll do some more reading on this.

 

ETFwatch have posted some performance data for the ASX-listed ETF-based hypothetical portfolio they created back in November 2015.

The detailed write-up is here:
How our low cost ETF portfolio performed in 2016

 

Lars Kroijer

Lars was a Hedge Fund Manager who had A Change of Heart in 2006.

Lars Kroijer is an author entrepreneur and former hedge fund manager. He founded the hedge fund firm Holte Capital Limited in 2002, starting with a fund of $3.5 million. By 2008, his fund reached about $1 billion in invested capital, before the global financial crisis led him to close the hedge fund business.​

Kroijer then created and was an author of two books: The first, Money Mavericks: Confessions of a Hedge Fund Manager in 2010 was about his own life as a hedge fund manager. The second, Investing Demystified, was published in 2013.

If a hedge fund earned 10 percent in a year, only 3 percent would end up in investors’ pockets. The other 7 percent would be eaten up by dozens of layers of fees.

 

Article extolling the virtues of the following mid-cap ETF:

https://www.vaneck.com.au/library/vaneck-vectors-etfs/MVE-fact-sheet.pdf

 

And State Street reminding us of their overseas dividend ETF in the quoted article below. I must investigate further on this ETF one day.

https://www.spdrs.com.au/etf/fund/ref_doc/Factsheet_WDIV.pdf

Complete white paper found here:
https://www.spdrs.com.au/library-co...Strategies for Australian Investors_FINAL.pdf

 

Tiny US colleges' investments are outperforming Ivy Leagues with billion-dollar endowments -- and they're doing it with a strategy anyone can use

Harvard University, which at $35.7 billion has the largest endowment in the world, lost 2.2% for the year ended June 30, 2016. It lagged behind the rest of the Ivy League in returns.

Houghton College on the other hand, with a fraction of Harvard’s wealth at $46.4 million, had an 11.85% gain for the year ended September 30, 2016. The relatively unknown liberal-arts college located in New York, which has a little over 1,000 undergrads, beat even the best performer in the Ivy league, Yale University, which had a 3.4% gain.

Interestingly, the strategy Houghton used to achieve its impressive results mirrors the same advice experts give to individuals looking to invest: The college ramped up its passive investing.

 

Agreed, just finished reading this also

S&P study finds active fund managers cost investors billions



Investors are throwing away billions of dollars a year on fund managers who fail to beat the returns of passively managed, far cheaper index funds, intensifying pressure on managers to justify their value.

Australia’s benchmark S&P/ASX 200 stock index rose almost 12 per cent last year but the 700 Australian funds trying to beat it returned only 9.2 per cent on average, with a quarter returning less than 5.9 per cent after fees.

The findings by S&P Dow Jones Indices are expected to rekindle the debate over what delivers better value for investors — actively managed funds or so-called index funds that track benchmarket indices.

 

Looks like 2.5% according to Credit Suisse. Look at the growth of the US also

 

The problem with these graphs is that it looks like countries have gone backwards. So you would assume that the UK is poorer now than it was back in 1899.

To get a true understanding of how we have gone the pie chart for 2016 should also be bigger to 1899 relative to the real increase in output.

 

There's many animals in the stock - market, the Bulls and the Bears are well known, there's also the Pigs, the Hogs and the Chickens, the Ostrich and the Dog (with or without fleas), the Sheep and the Hare and Tortoise.



There's a dart throwing monkey and a dead cat that may likely bounce when he hits the pavement (unless resuscitated by that damn monkey)



Owing an index is like owning the menagerie or farm, owing a few indices is like having a few farms with different produce or crops

 

Hey guys, I am looking to change my superannuation fund to start buying some ETF for the long term gain. I saw few people recommending the Hostplus ChoicePlus. What do you think about that? Any other recommendation? Thanks

 

I'm using ING Direct.

Living Super

You can buy ASX 300 stocks as well as a wide range of ETFs and LICs

Shares, ETFs and LICs

Make sure you carefully look into the fee structures of any candidates you look at before you choose a provider.

 

thanks @wombat777

I know, understanding the fee structure and what ETFs they have is a bit of challenge sometimes.

Luca

 

Give ING a call. They were quite helpful. I'm sure the other funds would explain it too.