Discussion in 'Shares & Funds' started by Nodrog, 18th Mar, 2020.
Vanguard cranks up exit costs on Aussie bond fund
ETF investors defy the virus panic
Investors in exchange-traded funds (ETF) are staying in the market but shifting to more defensive assets in big numbers, resisting the panic-selling phenomenon across global equity markets.
Internal data compiled by ETF managers suggest record numbers of investors are piling into products that provide access to bonds and fixed income investments, rather than joining the market sell-off.
“People are repositioning portfolios but they aren’t pulling out, even though people across the market are selling shares,” Alex Vynokur, managing director of fund manager BetaShares, told The Australian Financial Review
In the past three to five days, as the global sell-off in equities intensified, the fund manager's Australian Government Bond ETF has seen volumes 50 per cent higher than the corresponding period in 2019. That comes despite the relatively low yields on offer thanks to monetary policy.
Bond ETFs Face Toughest Liquidity Test Yet in Virus Turmoil
I'm not surprised. VAS has always been in my investment strategy but it's been expensive. At $90 I csn afford to buy that many. At $60, it's a whole lot more attractive. I'm not surprised people are buying.
Absolutely, I'm looking to go big into it once the dust settles, I think there's far more to come!
Separate names with a comma.