With the rotation out of high priced defensive income stocks in the Australian equity market in recent months – and toward sectors offering relatively better value, such as resources – fundamentally weighted indexing methodologies have again demonstrated their ability to outperform traditional market-cap weighted indices over time. Dynamic value tilts through a fundamentally weighted index
Following on from our recent blog post regarding buy-write strategies in the United States market, this note considers the Australian evidence, including research relating to a buy-write strategy similar to the one underpinning the BetaShares Australian Top 20 Equity Yield Maximiser Fund (managed fund) (ASX Code:YMAX). As will be shown, compared to a traditional “buy and hold” strategy,
Our post entitled “What is a balanced portfolio and what does it mean for me” briefly explained “core and satellite strategies” using ETFs. In this Portfolio Construction post we look further into implementing a core and satellite strategy in an Australian equities portfolio.