ETF Vanguard Global Value Equity Active ETF (VVLU)

Value Stocks Had Been Left For Dead. Their Revival Could Be the Real Deal.

 

VVLU jumped over 5% yesterday. Is this their tactic to overcome dividend payments?
@dunno ?

 

Probably because @dunno owns 99% of VVLU and they know he reinvests the distribution.

 

I saw that yesterday - Some poor sole bought 330 odd shares on open and learnt the hard way not to put in @ market order before the market makers have their orders in. Mid spread for both yesterday and today has been high $48 but no trades since the rouge one. Nothing of substance happening, although there is early signs (lets hope its a false alarm) in relative price action of value over last few weeks.

 

I was looking at this thread and wondering what you were all talking about and why I couldn't find it anywhere until I realised it was actually V V L U not W L U.

I'll give myself an uppercut...

 

Thank you @Zenith Chaos, you may have saved me some money.

I did have DRP on for VVLU and just checked the plan document.



I read that as DRP price is market price at close of 30/9 which would be the rouge $52.42 price. (funny business???) Why the rules arn't to issue at NAV at period end is a bit beyond me.

Record date is tomorrow - So I'm turning DRP off for this distribution just in case. I will report back what DRP price is actaully announced.

 

My initial thought was that Vanguard increased VVLU's NTA instead of paying out a dividend because of AMIT, but I just checked and now they are AMIT again - last time they were not. FUM appears to have increased slightly.

Investment Products

• Benchmark: FTSE Developed All-Cap in Australian dollars Index
• Asset Class: International Shares
• Management style: Active
• Domicile: Australia
• Distribution frequency: Quarterly
• Fund Taxation Election Status: AMIT
• Fund inception: 13 Apr 2018
• ETF AUM: $15.96 Million as at 31 Aug 2019
• Underlying fund: Vanguard Global Value Equity Fund
• Underlying fund commencement date: 08 Sep 2016
• Total AUM: $24.40 Million as at 31 Aug 2019

 

Back to $48.90. Did someone from Vanguard "accidentally" buy some at 52 yesterday?

 

Was going to ask everyone why it is so volatile. Looks like no one knows!

 

Phoned Vangaurd to see if they would use rouge market price as basis for DRP price.
They couldn't see the market prices, just have the NAV prices which they list on their site. Said those prices are the basis for the DRP pricing. Makes sense that they use NAV because that is what price additional units can be created at. After the call, I'm comfortable that the rouge price wont affect DRP pricing so will continue on with DRP - I f they have given me a bum steer, I won't be happy, Jan.

DRP price should be the 30th Sep NAV of $48.90 less the ~ 21c distribution. We will see.



This example of a market price spike away from NAV is a glimpse of the volatility that will erupt in these low volume ETF’s when the market maker step away in volatile times. Lucky that if people do stupid things in those times, we don’t have to copy.


I can still here mum – If Johnny jumped off a bridge would you follow him…. (mum would be proud, I’ve moved on from my origina answer of "Hell yer")

 

I have the wholesale fund (on which the ETF is based) and according to the charts on Vanguard nothing weird has happened. It's actually dropped over the past few days.

 

How can the market maker step away? I thought their job is to keep the share price around NTA?

"hey, what happened to my brand new Ferrari you were watching for me? "..."oh sorry I just stepped away for a while"

I place my orders at specific prices and was considering doing it at market to simplify things, but this scares me.

 

Hell no, not with ETFs especially near open and close. I’ve never used a market order.

 

DRP price was based on NAV and came in at $49.6926

Relative strength of VVLU vs VGS has just broken out of the channel that has contained it since listing. Red line on chart would confirm the break for me.



Things smell a lot like early 2000's to me at the moment.

This guy from Platinum seem to think the same. (so he must be right)

 

Yes, from memory Anton Tagliaferro expressed similar sentiment recently.

Personally I will continue to invest new cash from dividends / distributions promptly as per asset allocation. However as for our existing large SORR cash holding I’m still taking a cautious approach. I’ve invested some of it recently but only with “Value” focused LICs QVE and PMC. I’m not trying to do the timing thing but simply taking a cautious value / contrarian approach.

 

@dunno - wow that video was eye opening.
I really enjoyed watching it.

 

It tells you nothing about what will happen in the future but the history of 2000-2004 as some valuations of the late 1990’s got re-appraised is an interesting period to review. (rotation from growth to value)

The chart is a relative strength chart starting 1 Jan 2000.

The growth-oriented Nasdaq is the red line and it dropped about 78% over an approx. 22 Month period.

The white line is the S&P500 it dropped about 50% over roughly the same period.

The Yellow line is the XAO It was still making a high about 17 Months after the Nasdaq high before it commenced its own 22% fall over about 9 Months and bottomed out as the other two index's were making their first 'higher' low.

 

I like the yellow line. Should I go all in on XAO

Just kidding

Cheers
Oracle

 

Like a few others here I remember these years, they provided a great opportunity to accumulate. We did not over leverage and were able to accumulate good shares at great prices. The people I saw who suffered during this period (and a couple of other downturns) over leveraged and/or played in the foreign currency market areas without doing enough homework first

 

@Nodrog

Limit Orders?