ETF Exchange Traded Funds (ETFs) 2021

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

Betashares

 

Top Stock Pickers Crush S&P While Failing to Stem Outflows

"Star mutual fund managers are beating the soaring stock market in 2020 -- but customers are abandoning them for ETF index-trackers anyway."

Bloomberg: Top Stock Pickers Crush S&P While Failing to Stem Outflows

 

Interesting the Betashares A200 has a lower distribution than VAS. Due to different dates?

I'm considering Betashares over vanguard for my Aussie allocation going forward, had some really awful service recently dealing with vanguard direct.

Also looking at the new DHHF but in SMSF.

 

Or maybe different number of holdings. A200 is c 200 holdings whereas VAS is c 300 holdings.

 

Historically the ASX 200 is 82% of total market and ASX 300 is 85% so there should only be ~3% difference in the extra 100 companies. Over 12 months the performance should be similar I think. Not sure the exact current percentage, this is from slightly old data.

 

OK. So to even further confabulate regarding the dates both VAS and A200 have the same ex-distribution and payment dates and have for a couple of years.

More than similar according to this.

 

Some surplus funds hitting the accounts in the next fortnight which will find its way into either VAS or Argo and some chicken breast of course.

 

I thought it was to do with A200 having lower FUM and therefore as new units are created towards end of qtr and before ex div date (and post ex div date of the larger underlying holdings) there is a larger dilution of dividends per unit than VAS with higher FUM.

so new units are still entitled to receive the distribution however they did not contribute to increasing dividends received from the underlying holdings

 

Just bought some more IOZ and IEM, spread the love

 

OK knowledgeable ones. Noting the number of securities held, please explain?

 

Not one of the 'knowledgeable ones' but I see what you mean, states it only holds 200 securities not 300, someone having a bad day at the office perhaps?

 

Bizarre.

 

That’s the broker basket not the holdings.

Because the smallest 100 companies in VAS have little impact. Tracking them more loosely causes very little tracking error in the big picture. They probably do catch ups on the smallest 100 when a tolerance for tracking is breached.

for example instead of including a few dozen of all the rats and mice in every creation basket, a few hundred/thousands or whatever are included when a variance tolerance is reached. Maybe they even do a custom basket just for the smalls periodically? With the typical creation/redemption being the ASX200.

Creation units for the ETF provider are all about balancing costs, tracking error, tax and index changes, they don’t have to replicate every day a representative slice of the index they are tracking.

Broker baskets don’t tell you what’s held by the ETF, it just tells you what the ETF provider will swap for a creation unit on a "particular" day.

If you want to know what underlying shares you are buying in an ETF – look at the funds holdings not the broker basket.

 

This may assist with regards to understanding how ETFs work.

https://www.etf.com/publications/jo...etf-creation-and-redemption-models?nopaging=1

If you look at Vanguard's site you will see at last count VAS is invested in a total of 305 different securities.

 

Awesome. Good stuff from both of you. Appreciated. With ETFs I've not gone much (at all?) behind the top details.

 

Number of holdings 303 here

 

Hi just wondering what's the thought on HACK:

ASX HACK | Global Cybersecurity ETF | BetaShares

Cybersecurity is big at the moment and will be an important thing to consider for years to come. Good investment? Keen to get some suggestion/feedback.

Thanks

 

VTS just reached a 52 week high with a trade of 260.00 at 21/01/2021

 

And recently Market Cap ($in billions)

1 APPLE INC. $2,138.91
2 MICROSOFT CORPORATION $1,607.74
3 AMAZON.COM, INC. $1,557.56
4 ALPHABET INC. $1,174.40
5 TESLA, INC. $783.12
6 FACEBOOK, INC. $715.95
7 BERKSHIRE HATHAWAY INC. $547.60
8 VISA INC. $ 471.17
9 JPMORGAN CHASE & CO. $423.30
10 JOHNSON & JOHNSON $421.94

 

If you want dividends , I dont know of anything better. I think it is quiet achiever. not much noise and hot air made about this but much better than most of the LIC's. 10% dividend, 20% if you bought 5years ago. The price doesnt fall by the amount of the dividend when it goes ex. It also has good CG about 15% p/a. High dollar may perhaps reduce earning this year but make it a good time to buy, as falling dollar latter may enhance returns. The Dividends are achieved because of a mandate that limits weighting so gainers are sold down and some invested in up comers. Great way to get good dividends from Growth stocks. Some very good sound companies owned by HACK. Personally I prefer higher returns and having my capital more concentrated in the better companies and letting winners run so I get a higher weighting by investing directly into HACKS top holdings which can be more lucrative like OKTA, Crowd Strike, Zscaler and Cloud Flare and get 100% returns in one or two years instead of 4 years.