alternative investment with ETFs

What’s the alternative?

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

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Common ETF questions

ETFs: sorting fact from fiction (Part 1)

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

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Core satellite investing with ETFs

How using core-satellite investing with ETFs can give you outperformance potential

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

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Fundamental Indexing: active management performance with index fees?

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

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Give your portfolio the “EX” factor

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

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Portfolio Diversification II: The importance of fine-tuning

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

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