How should value investors tackle ETFs?

Discussion in 'Share Investing Strategies, Theories & Education' started by MoneyNotorious, 15th Apr, 2018.

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  1. MoneyNotorious

    MoneyNotorious Member

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    They say you should be fully aware of what you’re buying into. Unfortunately for individual stocks, at my current 1 month beginner level, I cannot analyse companies financials very well to gain the information I need. In due time, I will become comfortable for fundamental analysis, but whilst I’m still new and learning every day, maybe it’s best not to try and risk it just yet.

    Nonetheless, my chosen path for investing is and always has been value investing. I’ve never viewed the stock market or investing game as “get rich real quick” because that’s foolish (unless you struck big with Bitcoin then kudos), but my research has concluded that the best place for beginners to start is ETFs or if you have enough coin, managed funds - index funds nonetheless.

    But how would a value investor go about this? With so many to choose from on the ASX it’s incredible the amount of power you have to access diversified portfolios and different indexes. But every website seems to recommend “the best picks for ETFs in said year” but I’m always sceptical about professional articles by “journalists/financial gurus”.

    That’s not to say I will give up on growth investing, but my main approach is value. So how would one go about this? Does anyone have any tips or sources that can help narrow down choosing even the right ETFs?
     
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  2. Hodor

    Hodor Well-Known Member

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    Should give you some ideas.
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    ETFs are sold ( on market ) very close to the actual NTA value at the time of sale ( unlike LICs which could be trading @ a 20% premium or discount

    so timing your ETF purchase can be very important ( you have yo pick those nasty dips for best results , not mis-pricings like what can happen in LICs )

    ( DYOR )

    i will watch the full film first before expanding further
     
  4. twisted strategies

    twisted strategies Well-Known Member

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    now 'passive index ' is a concept i twisted a to suit myself

    VAS i averaged down in 2011 as the market slid ( a hedge against bad stock selection since i was a novice , then )

    QFN ( ASX XFJ .. financial sector ) was bought in 2012 to exploit a temporary a cash injection $6K in but $5K to exit 9 months later .. but snagging to DRPed divs )

    i modest success mainly because the XFJ is a more expansive index now ( includes more stocks )

    only mildly successful were SLF ( ASX property sector ) and IEM both since exited
     
    Last edited by a moderator: 15th Apr, 2018
  5. twisted strategies

    twisted strategies Well-Known Member

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    think of passive index investing as NOT get rich quick ... but maybe as ' not lose quick '

    when your selected index gains , it is often because of inflation

    do not let passive investing fool you into not keeping a watchful eye in your investments ( good timing on extra cash injections might be a BIG help )
     
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  6. Renton Parker

    Renton Parker New Member

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    From a value investing perspective, an ETF is only really a good play when the market crashes because the index is propped up by so many underlying assets. Here is a link to some ETF strategies which help when adding to an ETF each month: Financial Independence Retire Early | Invest for FIRE

    Other pages on the site deal more with the investment of individual stocks (there is also a lot of other information that will help if you're learning about value investing, books, multimedia, psychology, etc.).
     
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  7. twisted strategies

    twisted strategies Well-Known Member

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    *** when the market crashes ***

    is the key phrase ( the concept of too many bargains to pick just a couple comes to mind )

    whether chasing a sector or a whole index timing is very important

    and please .. please .. please READ THE FINE PRINT those extra hours can really pay off ( for you )