ETF Exchange Traded Funds (ETFs) 2022

{Note from mods: this thread continued from thread Exchange Traded Funds (ETFs) 2021 }

@Nodrog a relatable chart

 

Here's an interesting look at growth vs dividends.
Obviously he's analyzing the US market though still food for thought.
An obvious benefit or growth vs value vs dividends in various funds is that you get to choose when you get paid, how much and the tax.

 

Last year was a banner year for investors, with the S&P 500 racking up its third-best yearly performance in the 21st century.

For those keeping score, the benchmark index climbed 26.9%. Add in dividends, and the S&P 500 total return was 28.7%, powered by energy, finance, and large-cap tech stocks. But a peek inside those numbers reveals a market of haves and have-nots.

For the full year, Goldman Sachs found that a batch of just five stocks—Apple, Microsoft, Nvidia, Tesla and Alphabet’s Google—delivered 32.6% of all S&P returns.

After a banner year for stocks, Wall Street says to watch for these headwinds

For Bonds

 

What this does not show is the volatility.
You could invest in bonds with 3x leverage and have a simlilar volatility of stocks, with 3x the returns, minus interest of course.

edit: maybe the 70s had higher volatility than the last 40yrs. Not sure.

 

Happy calculating day.



https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02473161



https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02473146

 

STW distribution statements downloaded to appropriate folders.

Such fun.

Now to eagerly wait until April rolls around so I can do the same thing again.

 

I don't know how you handle the pressure!

 

The same way I deal with investing matters.

I outsource it so others can do the worrying for me.

 

Charles D Ellis

Investing pioneer Charles Ellis says you're just about guaranteed to get top returns in the stock market using this method

 

That hurts my mind

 

Jan 2022

Performance of Managed funds vs index funds

Here are some findings from the SPIVA ScoreCard concerning the Australian market:

• Out of all Australian equity general funds:
  • 80.8% underperformed against the S&P/ASX 200 on a 5-year basis
  • 75.7% underperformed against the S&P/ASX 200 on a 3-year basis
  • 55.7% overperformed against the S&P/ASX 200 on a 1-year basis

• Out of all Australian Equity Mid- and Small-Cap funds:
  • 55.1% underperformed against the S&P/ASX Mid-Small Index on a 5-year basis
  • 65.3% underperformed against the S&P/ASX Mid-Small Index on a 3-year basis
  • 65% outperformed against the S&P/ASX Mid-Small Index on a 1-year basis

• Out of all Australian Bond funds:
  • 85.5% underperformed against the S&P/ASX Australian Fixed Interest 0+ Index on a 5-year basis
  • 70.2% underperformed against the S&P/ASX Australian Fixed Interest 0+ Index on a 3-year basis
  • 70% outperformed against the S&P/ASX Australian Fixed Interest 0+ Index on a 1-year basis

• Out of all Australian Equity A-REIT (real estate investment trusts) funds:
  • 78.8% underperformed against the S&P/ASX 200 A-REIT Index on a 5-year basis
  • 56.5% underperformed against the S&P/ASX 200 A-REIT Index on a 3-year basis
  • 58.5% underperformed against the S&P/ASX 200 A-REIT Index on a 1-year basis

However, it could be unwise to discount actively managed funds based solely on this data. Active funds are handpicked with risk management in mind. Therefore, during times of market volatility they could be your saving grace. It is also worth noting that markets are cyclical and while at the moment passive investments are coming out on top, at some point this could shift as it has done in the past. After all, it’s important to keep in mind that past performance isn’t a guarantee of future returns.

 

What a 10k investment in BRK would have returned if they had charged 2/20 fees

Link

$1,000 investment in 1964 turned into 1.2M instead of nearly 16M

 

Is this of any help?

 

Mini heart attack this morning when VAS put out a “trading update” (the usual headline when a company puts out earnings downgrades or other really bad news).

Turns out they are just giving themselves permission to buy BHP Plc shares in anticipation of the gigantic index rebalancing about to take place.

crisis averted, situation normal. Phew.

 

I mean, really!

 

Or is it part of a cunning plan?

Vanguard Australia - Proxy report

 

I'm going to be seriously overweight BHP then, got around 7 years of employee shares (from ages ago which were matched also).

 

I started out with BHP many moons back. Employee share plan gave us interest free loans to get 1000 shares each year. When I left I sold enough shares to pay off the loan and then a few years later sold them all for $20k. I imagine if I'd kept them all they'd be worth a pretty penny.

Very good learning experience.