ETF Exchange Traded Funds (ETFs) 2019

Gee, I thought they would listen to the wave of feedback on all the forums and offer a 100% Growth option - this was everyone's whinge with the 90/10 Vanguard option.

Also, a smart move would be to offer quarterly distribution payments in DIFFERENT months than Vanguard - this would make these a great companion holding with Vanguard, so for those retired or FIREd a smoother income stream could be realised.

....just a couple of idle thoughts.

 

iShares in Canada have their diversified strategy funds with an MER of .20% (scratch that, just checked and it's now down to 0.18%)

Here’s the link to the iShares product page

Vanguard's Canadian offerings have a management fee of just 0.22%

 

These would not be for me. If I wanted to change my balance down the track I would not want to pay the full CGT on a swap from one to the other.

 

Hi Guys
I'm thinking of looking for an ETF that will be exposed to the UK
I reckon the only way is up after the election
Any thoughts?

 

F100 focuses on UK and follows FTSE100
It is relatively new fund, hence I am not too sure about its liquidity.

BetaShares FTSE 100 ETF | BetaShares | ASX: F100

 

We have the breakdown of individual ETFs.

Interestingly, Betashare has used NYSE funds for their international allocation. Namely, Vanguard VTI and State Street's SPEM and SPDW

https://www.betashares.com.au/files/collateral/pds/DZZF-DBBF-DGGF-DHHF-pds.pdf

 

The fund on track to beat 98pc of its peers

 

With the higher turnover and 28 basis points higher than A200, it will probably slightly under-perform the market over the long term.

Interestingly, although I know they exist I never see any US blogs/forums mention equal-weight ETFs.

 

I’ve seen a few positive research studies over the years in regard to equal weighted indexing. But have never invested in these products myself.

It appears to have done well here with the ETF having near $1 Bil FUM. No doubt the argument that it helps negate the hugely concentrated nature of the cap weighted ASX index has worked in its favour.

Of course with most smart beta ETFs turnover and related tax consequences is an issue depending on the structure holding the assets. With a tax free Super pension CGT is not an issue.

 

ETFs: Transparent, cheaper and liquid

 

Australian ETFs further widen their appeal


The latest BetaShares/Investment Trends 2019 Report shows Exchange Traded Fund (ETF) adoption is at record highs. The insights are based on responses from around 8,000 investors and 800 advisers, making it the most comprehensive survey on the ETF industry in Australia.



ETF industry reaches $60 billion

The Australian exchange traded fund (ETF) industry has reached a high of $60.7 billion in funds under management thanks to strong inflows and asset value appreciation, according to BetaShares.

The latest BetaShares report found that November had a monthly growth of $3.5 billion which was the largest dollar increase on record.

About $1.7 billion came from inflows, and $1.8 billion from asset value appreciation. Around $1.2 billion of inflows came from international and Australian equities, and $300 million from fixed income flows.

 

Unlike all other investment products the growth in popularity of ETFs does not increase the value of the assets of current ETF holdings (a big demand for an LIC would push the price up in contrast). It will increase liquidity, and arguably increase peoples confidence in investing in shares compared with other asset classes so increase prices indirectly This could end badly when people realise (that they can still drop by 50% in value even if they are the *best* way to own shares.

 

I hold MVW inside Super and have been rather surprised at how well it has done compared to VAS

 

Global Impact of Investor Home Country Bias

Research documents that familiarity breeding investment (leading to a home country bias) is a global phenomenon, as most investors hold the vast majority of their wealth in the form of domestic assets. In a 2017 study, Vanguard found that in each case they examined, investors exhibited a strong home-country bias.



Finally, I add this note of caution, one that might help you avoid home country bias. If a belief in relatively high market efficiency has led you to conclude that you should be a passive investor—accepting market prices as the best estimate of the right prices—you should also accept the idea that all risky assets have similar risk-adjusted returns. If that were not the case, capital would flow from assets with lower expected risk-adjusted returns to the assets with higher expected risk-adjusted returns until equilibrium was reached. If all risky assets have similar risk-adjusted returns, there is no reason to have a home country bias—other than perhaps a small bias to take into account that investing in U.S. stocks is a bit cheaper than investing in international stocks. On the other hand, if you are still employed, it is likely your labor capital is more exposed to the economic cycle risks of the U.S. than to foreign market risks. If that is the case, once you include your labor capital as part of your portfolio, you should consider overweighting foreign markets to offset your labor capital risk.

 

I wish I had less domestic shares, and in the next drop I will be adding more international so I agree with sentiment. I observe that 50% of Oz shares are owned by overseas interests. It is arguable that they are setting the prices - and they don't get franking credits. These can be 30% of the dividend (over the ASX300), and dividends are greater the growth in Australia (say 66% of return is in cash - for a number). Under these assumptions Oz-shares are 30%*66%=20% "cheaper" to Australian's than Oz shares to international buyer or international shares. This is a strong incentive to stay local (and indeed may be our undoing).

 

The longevity of the world's largest ETF rests on the lives of 11 U.S. millennials

Thanks to a quirk in the legal structure used to set up the SPDR S&P 500 ETF Trust, known as SPY, more than $250 billion rests on the longevity of 11 ordinary kids born between May 1990 and January 1993

It all harks back to the arcane structure used to create SPY, the first U.S. ETF, in 1993.

 

Per @SatayKing "It's all about me"



January's looking good for dividends in the kitty

VAF 2nd Jan
STW 13th Jan
VAS 17th Jan
VGS 17th Jan
VEU 24th Jan
VTS 27th Jan

Bogle's logic is very simple. Investing is about owning businesses and reaping the rewards of their growth.

These rewards come in the form of both business growth and dividends. The larger a dividend-paying business grows, the more dividends it will pay shareholders.

 

Stop it, you know I get excited whenever anyone mentions Dividends.

 

It Must be true..It's on TV

 

Nah it isn't. Photo-shopped and CGI.




{Note from mods - thread continues here: Exchange Traded Funds (ETFs) 2020 [ETF]}