BetaShares recently expanded its product range to include our first fixed income/bond fund, the BetaShares Australian Bank Senior Floating Rate Bond ETF (ASX Code: QPON). Due to the level of interest we have had in this fund so far, I thought it would be timely to write a short series on the basics of Bonds.
As investors, many of us like to be on the lookout for new opportunities that add value to our portfolios and are trying to make sure that our portfolios are protected during market downturns. An often overlooked or misunderstood asset class that can assist in both adding value to a portfolio and provide some protection
There’s no doubt exchange traded funds (ETFs) are shaking up the wealth industry across the world, including Australia, and, as such have naturally attracted their fair share of friends and detractors in the process. As a relatively new product in Australia, it’s also understandable that many investors are still learning to sort through the many
If you had hypothetically bought the S&P/ASX 200 back on 1 June 2015, it was trading roughly at 5735 which is close to what the S&P/ASX 200 closed at today (in fact it was trading 5720 as of June 26th). So does that mean you have finally just broken even if you are still holding
Core-satellite investing is a portfolio construction approach that has been used by both institutional and individual investors overseas for many years now and is a topic we have touched on in the past, see here and here, for example. There are many benefits to this approach, and with ETFs being an efficient tool to help
US technology stocks have corrected somewhat in recent weeks as concerns mount over possible overvaluation in the sector. This note suggests, however, that the strong performance of the NASDAQ-100 Index in recent times has continued to reflect solid underlying earnings growth, and that valuations remain far from stretched.
At a conceptual level, diversification is all about spreading risk and not putting all our eggs in one basket. Quantitatively, as I’ve previously explained, one of the main benefits of diversification is lowering the volatility for a given level of expected return. However, another way of looking at it is that diversification also allows us
The case for passive investing is often couched in terms of the inability of active managers to “beat the market”, with the market in turn usually defined as a capitalisation weighted equity index such as the S&P/ASX 200. Yet as this note will demonstrate, using an alternative approach to passive indexing can potentially be used
When it comes to the Australian sharemarket, there are a couple of mantles Australians can claim over our international counterparts. Firstly, Australians have some of the highest levels of share ownership in the world, with 33% of us owning shares directly*. Secondly, by global standards, the concentration of this ownership in large-cap shares is relatively
Last year I addressed the concept of portfolio diversification and how we can assess it quantitatively through the use of return correlations. Just to recap: Correlation refers to the strength of the co-movement between two assets or portfolios (ranging from -1.0 or perfect negative correlation to +1.0 or perfect positive correlation) Diversification benefits – where