Risk of having all investments with Vanguard

i spread across providers because each new buy offered a superior opportunity at the time , and was in no way a comment on Vanguard management

obviously if the global market implodes dramatically there will be few survivors ( funds or other companies ) , now fund managers make good decisions and bad ( right across the board ) and that is always a risk as is a hostile take-over , ( i have been at the uncomfortable end of several )

but i am a big fan of diversity , and if extra complexity is the result , so be it

 

By the way @monk are you also shaking your head at the apparent correlation between actively managed hedge funds blowing up and the possibility of ETFs doing the same? If not, you should be.

 

Can I get a "please explain" on this? I'm not following. Which "other side"? What "stuff"?

 

So much so, I almost gave myself a sore neck .

 

I thought that the only comparable provider to Vanguard in Australia was Betashares?

 

Instead of being the interviewer she would have been the interviewee was the implication.

Many posts of one on here whose thought processes are, well, bizarre is the kindest thing I can say. Harmless enough but annoying. Others may wish to expand on it but that's as far as I am going to go with it.

 

You need to do more reading before parting with your money.

Blackrock, State Street and VanEck all spring to mind as other ETF provides you could look at.

 

Some light reading for you @Humphrey

ETPs

 

in theory a hedge fund is populated with the smartest folks they can buy ( although normally biased towards aggressive over-achievers )

SOoo if the smartest of the crop can make epic fails , the most cautious end of the class usually excel at NOT losing money , but of course they are still encouraged to take on risk , those who would rather not take on risk are still likely to have bad results , but hopefully less spectacular ones , but that still might cause investors to flee .

now an ETF although ( mostly ) computer-managed can still be frazzled by a mass investor exodus ( whether it was the computer's error or not )

'funds blowing up' has one major underlying cause .. a sudden loss of confidence by investors

if 95% want OUT there is every chance the fund will not have enough capital to cover ongoing costs ,

ETFs ( although both synthetics ) was the US oil ETF ( OOO i think it was ) and an inverse volatility index fund and BOTH got into trouble VERY quickly the oil on get into trouble when oil hit negative $40 a barrel and at least one oil trader defaulted ( another has since failed ) putting extreme panic into the oil ETF investors ( could you imagine your leveraged BHP shares suddenly going to negative $40 dollars triggering a margin call , well that is the equivalent , unimaginable as it is )

so it CAN happen to an ETF , but how likely is it , a NASDAQ one would be more likely than a S&P 500 one ,

remember after GameStop many investment rules changed again ( and some are still changing ) who would have thought some Reddit bloggers could blow up ( at least one ) $13 billion hedge fund , but they did , meanwhile at least one silver ETF is under serious pressure currently ( it probably can't supply the silver if demanded to , but MIGHT be able to buy the contracts out for cash )

again unleveraged VAS or STW are probably pretty safe ( you can't owe more than you invested in them , , as i understand it )

but the last few years have had some amazing twists , several will probably make the history books

 

and SO FAR ( i haven't researched them all ) they are all AT Least a tiny bit different

but those difference can count ( tiny fees is just one part of it )

 

How's your neck now @monk? Still a bit sore probably.

 

i have a ready supply of lineament ,( but should probably buy a spare tube or two and front-run inflation )

hope you get better soon

 

I would assume that these ETFs are a little different to a hedge fund though a fund none the less.
A bit more like an LIC, with a mandate.
Seems like an LIC may be a bit safer.

 

well once we get outside share holdings how do we know

that is one reason i am very underweight on international 'theme' or 'active' ETFs

( i hold ASIA 'free-carried )

but for international exposure i veer towards LICs ( or holding ASX listed shares that do a lot of business internationally )

with many global economies a complete mess , currently , is adding extra international exposure even wise ( at this time )

sure you can see many miners are holding up , the banks aren't so inspiring , and property managers ( REITs ) are being put to the test

not so easy to park money currently if you are cautious

 

Active hedge fund managers with their 2 and 20 fees and investments in complex derivatives can hardly be compared with passive index funds with assets held in trust for the benefit of the investors.

This thread is full of utter nonsense

 

No doubt harmless enough to yourself & others with a lot of experience, knowledge & success with long term passive investing, but what about those new to the forum wishing to gain such knowledge?

 

Thanks @Blueskies. I never realised that there were so many index alternative index funds.

Thanks @SatayKing, I had been at a loss for what to do over winter

 

Thanks @SatayKing, I had been at a loss for what to do over winter [/QUOTE]

No probs. Happy if it will add to any confusion. I'm here to help. Long, cool nights and a hot, warming humongous mug of coffee will assist.

 

That very thought did cross my mind @monk. In fact, I think one poster may have, could have, think about a lead for a share I wouldn't touch with a barge pole. However, if someone follows "advice" in that way, what can you do? Not much at all I would think unless you wish to wear down the mods with reporting a post.

Of course, and I hesitate to do this as it could well backfire on me but you could link the following post into your the favourite folder of your browser and plonk it in from there every so often.

 

The post above is full of utter nonsense. You have been warned.