ROBO Global Robotics and Automation ETF (ETF Securities)

Hi everyone,

I've got VAS and VGS, both for the long-term, as my mainstays. Would like to have one or two small (5-10% of portfolio) off-shoots. Considering ROBO Global ETF with ETF Securities.

https://www.etfsecurities.com/insti...o-global-robotics-and-automation-etf-robo-asx

ROBO-ETFS ROBO Global Robotics and Automation ETF – ETF Watch

Any general comments or stories on experiences with ETF Securities would be greatly appreciated. Or if you think there's a better option. Please note, I only consider Australian domiciled products.

Thanks you.

 

from a quick look ( remembering if i was tempted to buy i would research for a week or more )

1. MER is high , especially considering it is hoping for annual ( once a year ) divs.

the size of the fund is small , and the stocks in the basket are not household names so liquidity in ( constituent ) pricing might be an issue .

there is some risk this will be about 'capital gains ' ( rise and falls in share price ) rather than dividend returns.

but from memory you are looking for 5 to 10 year holds so capital gains might suit you fine

i would examine it carefully , taking note of how often they adjust ( or re-balance ) the portfolio holdings , ( are they churning shares for quick capital returns ?? ) ( they aren't creating all those expenses by paying divs monthly and 'div. stripping ' )

 

one afterthought , this MIGHT generate extra returns from M&A ( take-over activity )

i hold SYI, that had a nice windfall when TOL was taken over ( to give you some idea of what a generous takeover deal can do for your ETF or LIC )

 

i held SYI for some years before the TOL take-over ( that $1.01 cent div. in June 2015 )

SYI SPDRMSCIAUSELECTHDY ETF UNITS
Change

Balance Date Dividend Type Cents per share Ccy Franked % Ex-Dividend Date Books Close Date Pay Date
29/09/2017 Interim 54.200 AUD 91.00 28/09/2017 29/09/2017 11/10/2017
30/06/2017 Final 20.410 AUD 62.00 29/06/2017 30/06/2017 11/07/2017
31/03/2017 Interim 32.640 AUD 65.00 30/03/2017 31/03/2017 11/04/2017
30/12/2016 Interim 36.380 AUD 93.00 29/12/2016 30/12/2016 11/01/2017
30/09/2016 Interim 47.890 AUD 91.00 29/09/2016 30/09/2016 11/10/2016
30/06/2016 Final 21.820 AUD 0.00 29/06/2016 30/06/2016 11/07/2016
31/03/2016 Interim 21.650 AUD 75.00 30/03/2016 31/03/2016 11/04/2016
31/12/2015 Interim 39.150 AUD 94.00 29/12/2015 31/12/2015 11/01/2016
30/09/2015 Interim 54.260 AUD 91.00 28/09/2015 30/09/2015 09/10/2015
30/06/2015 Final 101.320 AUD 19.00 26/06/2015 30/06/2015 09/07/2015

 

Hey, the ETF tracks the ROBO Global Robotics and Automation Index. ROBO Global rebalances every quarter. They have 80 or so holdings. They profess to be in it for the long haul. They talk about it being a decades-long investment. The MER is high. Funnily enough, the MER is even higher for the same index in the USA. I'm planning to do a bit more research, and will give ETF Securities a call next week. Thanks for your insights!

 

due to (potential ) changes in my circumstances , i need most of my new buying to ' pay rent '( div. earnings ) ...

but 'decades long investment ' has been the mantra of many a dud fund ( the plantations the 200x years Bernie Madoff etc ) the QUALITY investments paid reasonable returns on the way and let inflation look after the capital gains ( VAS since 2011 is a nice example of that )

for high MER ( in an ETF ) look at HVST it pays divs. monthly and actively targets div. returns ( so you can see them working hard for those fees , and generating plenty of paperwork )

but in ETFs check even the tiniest of details ( and if unsure on part ASK A PROFESSIONAL )

i hold VHY , SYI , IHD and HVST all allegedly 'smart beta ' going after 'high divs ... and yet the top 10 holdings ( most times) are vastly different

HVST ( this changes rather often ) but some parts stay constant ( 5% of the major banks , but other holdings vary a fair bit )

Top 10 Exposures
COMPANY WEIGHTING
Westpac 13.4%
National Australia Bank Ltd 12.6%
ANZ 12.2%
Macquarie Group Ltd 10.7%
Commonwealth Bank 5.3%
BHP 3.4%
CSL Ltd 2.5%
Wesfarmers Ltd 1.9%
Telstra Corp Ltd 1.7%
Woolworths Ltd 1.3%

VHY

Top 10 holdings
1. Rio Tinto
2. Westpac Banking Corp.
3. Wesfarmers Ltd.
4. Commonwealth Bank of Australia
5. Australia & New Zealand Banking Group Ltd.
6. National Australia Bank Ltd.
7. Telstra Corp. Ltd.
8. APA Group
9. Fortescue Metals Group Ltd.
10. Alumina Ltd.
The top 10 holdings represent 75.4% of the total ETF.

SYI

Top 10 Holdings Weight %
NATIONAL AUSTRALIA BANK LTD 9.73
WESTPAC BANKING CORP 9.68
AUST AND NZ BANKING GROUP 9.50
COMMONWEALTH BANK OF AUSTRAL 8.80
MACQUARIE GROUP LTD 5.06
RIO TINTO LTD 4.99
SUNCORP GROUP LTD 4.42
WESFARMERS LTD 4.39
SYDNEY AIRPORT 4.18
INSURANCE AUSTRALIA GROUP 4.08

IHD

Top Ten Fund Holdings

JB HI-FI LTD 5.02%
ADELAIDE BRIGHTON LT 4.86%
ORICA LTD 4.69%
WORLEYPARSONS LTD 4.58%
ALS LTD 4.51%
SANTOS LTD 4.27%
TELSTRA CORP LTD 4.19%
FLIGHT CENTRE TRAVEL 4.14%
NATIONAL AUSTRALIA B 4.10%
COCA-COLA AMATIL LTD 4.07%

very different ways to cover the same idea ( and each DOES have some good times .. just not always in the same quarter/half year )

PS this works for ME because my top 5 holdings ( in the combined portfolios is )

1 WOW ( about 10% ) ( very low cash risk )

2 MQG ( about 3% ) ( no cash risk )

3 BHP ( about 3% ) ( full cash risk )

4 WES ( about 2% ) ( full cash risk )

5 APE ( about 2% ) ( no cash risk )