ETF Exchange Traded Funds (ETFs) 2015

Discussion in 'Shares & Funds' started by The Falcon, 21st Jun, 2015.

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  1. The Falcon

    The Falcon Well-Known Member

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    Yeah saw that and remembered your call. I think this KKR thing is providing the tailwind that price action will feed off. Your thoughts Greg?
     
  2. el caballo

    el caballo Well-Known Member

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    I am a technical trader Falcon, hence would disregard 100% factors such as KKR. The daily technicals have been increasingly bullish for a week now, and today represented the reversal culmination of that. A clear buy here.
     
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  3. The Falcon

    The Falcon Well-Known Member

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    Makes sense, and I should have known better :)
     
  4. el caballo

    el caballo Well-Known Member

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    No problem sir, you are clearly a doyen in the field of investing! I had always respected your posts on the topic in Somersoft (albeit as a lurker), and I rarely comment on trading in a public forum. The quality of your posting has prompted me to be marginally more transparent on this thread.

    PS: May I ask why the change from Erko to Falcon?
     
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  5. jaybean

    jaybean Well-Known Member

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    You've done a great job explaining the differences between EFT's and LIC's but can you help me outline the reasons why an investor may choose one over the other? E.g. A risk adverse investor might choose....an investor that wants high growth may choose...an investor that's looking to retire in 10 years etc etc. I think that will help me fully comprehend what the differences actually mean in practice.


    EDIT: been thinking about this. It seems to me they are basically the same in terms of being diversified, low risk, moderate growth vehicles, and the differences are more or less about the methodology and not so much the outcome. Am I right?
     
    Last edited: 26th Jun, 2015
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  6. The Falcon

    The Falcon Well-Known Member

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    @el caballo

    It's all about sharing mate and I appreciate your input from a different branch of the faith :)

    Viz. name change was just to line up all my online profiles under the one handle. The Falcon is my handle on other investment related forums and is cycling related. Paolo Savoldeli, "il Falco" was a bit of a favourite in my riding days....pretty obscure :)

    Got the Falcon, now the Horse....we are getting quite the menagerie around here.

    @jaybean yes very close indeed, I'll post more later.
     
  7. el caballo

    el caballo Well-Known Member

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    A different branch of the faith indeed, but if I get the opportunity to sit across a table on your next business trip south, I aim for that freewheeling discussion to divert a portion of my capital to the longer term type investments you espouse. That academic paper on Buffett is very illuminating, and I need to add it to my arsenal.
     
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  8. KDP

    KDP Well-Known Member

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    I took a position in VAS today. Initially wanted some LIC but couldn't justify the premiums to NTA that they're all trading at at the moment.

    Have kept some powder dry so if there's a bit more downward movement in the next couple of weeks due to the Greek issues then I'll look to add more.
     
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  9. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    The big LICs are anchors, pretty incredible.
     
  10. The Silver Bear

    The Silver Bear Well-Known Member

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    Any reason to buy VAS over STW?
    A friend in the know said they were virtually equivalent but STW was run by one of the biggest providers of this sort of thing and would have lower costs.
     
  11. KDP

    KDP Well-Known Member

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    I don't think there's much difference. VAS is by Vanguard so not exactly a small provider.
     
  12. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    Also STW tracks the ASX200 but VAS the ASX300, so you get a bit more diversification.
    Can't recall STW's fees? But yes, VAS is by Vanguard, so a giant player in the ETF field.
     
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  13. Cadbury99

    Cadbury99 Well-Known Member

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    VAS management fee 0.15%
    STW management fee 0.286%
     
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  14. KDP

    KDP Well-Known Member

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    As an aside the record date for dividend is coming up as well, 3 July for the Vanguard funds.
     
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  15. TwoDogs

    TwoDogs Well-Known Member

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    STW went ex-div couple of days back and since then does not appear to be tracking XJO so well. I use STW as it can be used as ASX collateral for options, but do agree that VAS is a better ETF.

    ETFs make up most of the equity and bond exposure in my SMSF.
     
  16. The Silver Bear

    The Silver Bear Well-Known Member

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    Thanks for great answers guys.
    Made $20 on my STW today so delighted with my first day, didn't lose anything yet (which I know will happen one day lol)!
     
  17. KDP

    KDP Well-Known Member

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    I think you need to change the mindset a bit with ETFs and shares in general, unless you're trading (which I don't recommend unless you have a lot of expertise in the area) then you need to put the short term price movement out of your mind. I know it's easier said than done, but don't even look at the price day to day. It's meaningless and the emotions involved will do more harm than good.
     
  18. TwoDogs

    TwoDogs Well-Known Member

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    It's super, don't follow the price every day. You'll end up like me and that's not pretty.

    The best advise I have never followed is just use weekly data to make your decisions. Look at on Sunday, set any trades on Monday and sleep at night. Yeah, like I'm going to be able to do that.
     
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  19. The Silver Bear

    The Silver Bear Well-Known Member

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    Completely agree with you both, the $20 thing was tongue in cheek ;)
    Great advice that correlates with advice from my friend in the know, I like to triangulate any advice before proceeding.
    I look forward to watching and being part of these conversations as I invest the rest of the $$$.
     
  20. The Falcon

    The Falcon Well-Known Member

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    Because with the big 3, you have long term minded investors, and LIC's are all the rage right now due to SMSF money so this is sticky money really. AFI for example, Largest holder is like 0.6%........so no big insto money at all. After a few years of GFC battering though a lot of punters must have had enough as in 2011 AFI was available at 5-7% discounts....this will happen again one day...the point of maximum pessimism is the time to load up and hold on :)

    Good call this...if you can do it. This is what Guy Spier says, never buy or sell when the market is open. If you are a certain type, (like me for example) you wont be able to help yourself checking stock prices unless you institute rules. A lot of investment is about protecting us from ourselves....
     
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