ETF Exchange Traded Funds (ETFs) 2018

Well it adds in emerging markets as well as small caps. Maybe not a significant change, but I think it's a pretty helpful/useful/logical product to make.

Effectively, it would be every listed company on earth outside Australia in order of market cap. Like what you'd get with VTS and VEU, although without the estate tax worries and also without having to decide on a weight for VTS (since that is US only).

This way you'd buy this ETF and never have to think about weightings to US or how much exposure to emerging markets (tech giants in China for example) because every company would be listed in order of market cap. Top 10 would include a bunch of US giants, Chinese giants and other Asian/Euro giants, sitting together all in one product.

I don't really know much about this stuff, but it just seems logical and simple to put it all together - hence my thought bubble

 

Australia would stay in, rule the universe

 

Oh, I understand this and wasn't my query.

Basically, when we talk "ETF's" in this way it is really an asset allocation/benchmark discussion. Once you have decided on the benchmark you want exposure to, finding the ETF is a relatively simple process.

My question is more about the performance of such a benchmark that you are after, and how the past results over a 10-15-20+ year period compare to the " MSCI World ex-Australia (with net dividends reinvested) in Australian dollars" Index (vgs).

Ie has this been modeled/back tested, or this is something you wish to explore? Does the index exist? My gut feel is that such an index would be 'splitting hairs' with the vgs index over the long run. I could be wrong. This could be the reason vanguard wouldn't see merit in it?

 

Vanguard ETF Distribution announcement in case you missed it.

 

I’ve gone back to when VGS was listed being late 2014 so hardly a long term comparison. No guarantee my assumptions are correct so not to be taken as advice or relied upon.

Here’s a comparison of:
Portfolio A: VGS - 100%
Portfolio B: VTS / VEU - 58% / 42% (Market cap of FTSE Total World)
...... includes ASX (2.2%)



VGS:


VTS / VEU:

 

ETF market outgrows LICs investments - Morningstar.com.au

 

Like rabbits these things, breeding like crazy:

ETF launch an Australian first

 

@Nodrog

When ETF's and LIC's are multiplying like rabbits, you have to be careful which one you choose

 

LOL.

 

BHP returns $14.7b to shareholders

2019 should be a another good year for dividends

Cheers,
Oracle.

 

https://api.vanguard.com/rs/gre/gls/stable/documents/18013/au

Hopefully reduce those nasty fees a little

 

Bogle Sounds a Warning on Index Funds


https://***********/DGK9Td

 

Thanks @John Ferguson . I couldn't open the link but I understand something similar was posted in another thread.

 

Barefoot Investor Break Free Portfolio link

Don't know how long ago this was but...

• STW
• VSO
• IOO
• VAP
• VAF

 

FWIW, he started this in late 2013 and reviews it every January. Last Jan he said that VDGR had a similar weighting to his portfolio (although less diversified) and now recommends that for people starting out with small sums up to approx 100K.

 

Very interesting to see this unfolding ;

NAB feels investors' wrath at AGM

NAB 88% first strike on remuneration. A criticism of index funds is that they almost always vote in favor of management, we aren’t seeing this play out here. Interesting to follow this.

 

The chart above is from Bank of America Merrill Lynch (BAML).


It's BAML's "Asset Class Quilt of Total Returns", a graphic that tracks the performance of major asset class returns going back to 2000.

With just a few trading days left to go in 2018, most of the top performers in 2017 have become the worst performers this year, and vice versus.

Only cash and US Treasuries have delivered positive returns of those assets monitored.

Not only has this year been in stark contrast to what was seen in 2017, BAML says it's also been highly unusual, noting the last time cash delivered positive returns while government bonds, corporate debt and stocks delivered negative returns was 1969.

Here's the AUD/USD (weekly) also

 

Meanwhile dividend investors who are continuing to see the income flow in unabated are oblivious to it all.



Merry Xmas.

 

Starting on Oct. 7, Charles Schwab will be slashing its online trading commissions for U.S. stocks, ETFs and options from the previous $4.95 to zero.

Link

Charles Schwab said Tuesday that it is ending commissions for online trading in U.S. stocks, exchange-traded funds and options, the culmination of a years long fee battle in the brokerage industry.

Shares of Schwab fell 9.7% on fears the change will hit margins. The broker said commission fees make up 3% to 4% of net revenue each quarter. Rival brokerage firm TD Ameritrade plummeted 25.8% for its worst day in 20 years. E-Trade shares cratered 16.4% for its worst day since 2009.

Starting on Oct. 7, Schwab, which holds about $3.72 trillion in client assets, will be slashing its trading commission cost for U.S. stocks, ETFs and options from the previous $4.95 to zero. Trading options will continue to cost 65 cents per contract. The changes will apply to securities on Canadian exchanges as well.