ETF Exchange Traded Funds (ETFs) 2022

Discussion in 'Shares & Funds' started by Redwing, 4th Jan, 2022.

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  1. melbinv82

    melbinv82 Well-Known Member

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    I understand, difficult to time the market in short term but currently am doing a refi for my IP.

    Thanks to the increase in property Price, I can get 200k which I plan to invest in vdhg

    In 3 years time I intend to upgrade my OO, that time I will have to use the equity from current OO(fully paid -will sell it at that time), equity in my IP plus most likely sell vdhg at that time.

    Although I will be able make the monthly payments even if the rate goes up by 2-3%, the value of vdhg may be lower than 200k if the market crashes.

    If that is the case, is it better not to use 200k now for vdhg?
     
  2. SatayKing

    SatayKing Well-Known Member

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    I don't believe in using the share market for placing funds on a short term basis. Nor do I have the faintest clue what the price of VDHG will be tomorrow, next year or next decade.

    Entirely your choice and your risk.
     
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  3. Redwing

    Redwing Well-Known Member

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    After ASIC, it's like

    [​IMG]

    The only approved answer?

    [​IMG]
     
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  4. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    I dont think there is a right or wrong answer. There can be more than one road to the same place. If you have plenty of equity some high yielding dividend stocks could be considered as a hedge against rising interest rates and help affordability/ borrowing capacity. If interest rates are high it will be because of booming economy and inflation which deflates debt and can increase returns on debt. For example currently SUL giving a grossed up yield of 11% and ADH and HVN giving 9%, with inflation at 4%, could mean a return of 15% in real terms x 2 years = 30%. Remember a 6% interest rate may only equate to 4% after tax. The price of the shares is of no consequence other than allowing a better yield if it falls, and 2 years is about the right amount of time for dividends to be allowed for servicing. So what if your shares turn to crap, house price may well fall too. or just wait another year or 2 for a recovery if you need to liquidate them. Sitting on the sidelines is a much greater risk than the risk averse realize.
     
    Last edited by a moderator: 14th Apr, 2022
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  5. Redwing

    Redwing Well-Known Member

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    On Wednesday 4 August 2021, folks from across the financial markets industry including fund managers, investment platform operators, and regulators came together in Auckland’s Q Theatre to witness industry leaders partake in The Great FMA (Financial Markets Authority) Debate. The moot of the debate was:
    Are investors are better off using experienced advisers than trying to DIY

    What I learnt - The Great FMA Debate: DIY Investing

     
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  6. SatayKing

    SatayKing Well-Known Member

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    Vanguard distribution statements downloaded.

    Now to place a large investment in SFA as it is obviously the most appropriate course of action.
     
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  7. Islay

    Islay Well-Known Member

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    Lol That’s all we are allowed to do now thanks APRA :)
     
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  8. SatayKing

    SatayKing Well-Known Member

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    Gee there is some nonsense applied by some share registries. The Vanguard statements have the HIN in full yet - presumably for security reasons - when logged in to the web-site only the last four digits are displayed by the registry. I find that bizarre.
     
  9. Redwing

    Redwing Well-Known Member

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    Just reading this by Nick Maggiulli

    NFLX is down 51.38% over the last month

    A Stock is Not an Index – Of Dollars And Data

    upload_2022-5-2_9-4-25.png


    Cont...
     
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  10. Redwing

    Redwing Well-Known Member

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    There are actually 504 stocks in the S&P 500

    Everything is a lie :confused::confused::cool:
     
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  11. SatayKing

    SatayKing Well-Known Member

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    And it's taken you 2,523 days to figure that out? :eek:
     
  12. Redwing

    Redwing Well-Known Member

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    Elon Musk, Cathie Wood say passive investing has become a ‘major problem’

    Elon Musk and Cathie Wood argued in a tweetstorm that the increased popularity of passive index funds has become a “major problem” as the bosses of those funds gain outsized power over the boards of public companies.

    “Decisions are being made on behalf of actual shareholders that are contrary to their interests! Major problem with index/passive funds,” the Tesla chief wrote in a tweet Wednesday.

    “In my view, history will deem the accelerated shift toward passive funds during the last 20 years as a massive misallocation of capital,” CEO of ARK Invest Cathie Wood added.

    The two heavyweights chimed in after famed venture capital Marc Andreessen noted top financial figures like BlackRock chief Larry Fink have an outsized say in American corporations when it comes to pushing agendas like ESG. But Wood also noted passive investors miss out on some high-growth stocks.
     
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  13. Redwing

    Redwing Well-Known Member

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    Book Review: Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever by Robin Wigglesworth

    [​IMG]

    Robin Wigglesworth, the Financial Times’s global finance correspondent who focuses on the biggest trends reshaping markets, argues in his latest book that the index fund is an unrivalled invention in recent financial history. Trillions explains the history of financial innovation and index investing, told through the intimate account of individual ‘Wall Street renegades’ and those around them who made it possible. Index funds are presented unambiguously as a force for good, driving down the fees payable to finance professionals and thereby bringing substantial tangible benefits to individual investors saving for retirement and other financial goals.

    The rise of index investing is a powerful trend in finance – Bloomberg estimates that passive management now comprises 43 per cent ($10 trillion) of US-based mutual fund and exchange-traded funds (ETFs), compared with 32 per cent ($4.1 trillion) in 2015. Globally, over $26 trillion – more than a year’s economic output in America – is now held in such funds, which is ‘almost twice the size of the combined private equity, venture capital and hedge fund industries’. The fundamental principle of index funds is being ‘average’. The majority of active managers charge at least 1-2 per cent per year while failing to beat the market over the medium term: ‘Statistics vary, but […] only 10 to 20 percent of active funds beat their benchmarks over any rolling ten-year period’ (8). In contrast, index funds charge as little as 0.03 per cent for closely tracking a large equity index.

    Trillions starts with a famous bet between Warren Buffett and New York-based Protégé Partners, a specialist asset management and advisory firm. In 2007, Buffett bet $1 million that no investment professional could pick a portfolio of at least five hedge funds that would outperform a low-fee S&P 500 index fund over the subsequent decade. Active managers with their high fees, Buffett explained, were starting at a disadvantage and needed to compensate for those fees. Buffett argued in his 2016 letter to investors that the active managers’ efforts ‘were to a great extent self-neutralising and their IQs would not overcome the costs they are charging end-investors’ (22). Buffett chose the low-cost Vanguard fund and won the bet a decade later, resulting in a charity donation. Naturally, ‘Buffett argues that being a professional investor is not an impossible task, but he is sceptical that many can succeed’ (16). ‘The bet is symbolic of bigger shifts in the industry’, Wigglesworth explains.
     
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  14. Baker

    Baker Well-Known Member

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  15. Redwing

    Redwing Well-Known Member

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    Reading an investors update

    His mindset

     
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  16. carfield

    carfield Well-Known Member

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    drop is scary for those that "speculate" for quick get rich scheme. drop is godspeed for rest of us "investors" to expand our income base.

    all the online investment accounts incite feel of quick trade with front page saying "your investment sum xxx, -27pct -$yyy cuz they want you to trade to earn brokerage

    have you seen online broker with front page that emphasize "income YTD $52870" :rolleyes:?
     
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  17. Redwing

    Redwing Well-Known Member

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    upload_2022-6-19_18-11-20.png

    upload_2022-6-19_18-12-36.png

    upload_2022-6-19_18-13-47.png

    Just looking at the S&P500 Total Returns across a variety of charts

    upload_2022-6-19_18-14-37.png
     
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  18. Baker

    Baker Well-Known Member

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    Took that, made this:

    upload_2022-6-19_20-36-32.png
     
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  19. SatayKing

    SatayKing Well-Known Member

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  20. monk

    monk Well-Known Member

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