I recall a meeting I had with a financial planner roughly three years ago responding to my question of ‘How familiar are you with ETFs?’ with ‘I’m a financial planner, I don’t need an EFTPOS terminal. Thank you!’ Oh, how times have changed. In my day to day role as one of BetaShares’ Business Development
Investors often choose to buy index tracking products like ETFs because of their lower cost (compared to the traditional actively managed fund) as well as a range of other potential benefits, like improved tax efficiency, better transparency and control. ETF users often also cite concerns about poor performance from traditional actively managed funds as another
We recently released our Half Yearly Australian ETF Review, where we reported that Australia’s exchange traded fund industry continued to soar to record levels in the first half of 2014, hitting a fresh record high market capitalisation of $11.6B as at end June 2014. Market capitalisation for the industry grew ~17% for the half, adding $1.7B
ETFs are becoming an increasingly popular and mainstream investment tool for individual and institutional traders alike. By now, most people know that ETFs can be bought and sold like any share on an exchange (like the ASX), through a full service or online broker. However we often get asked if there is anything else that
The NBA (the American basketball league) Finals has just finished with the San Antonio Spurs defeating the Miami Heat. Plenty has been written on how the two teams play different styles of basketball, but it turns out that there may be some investing lessons you can draw from the characteristics of the finalists.
Markets have shown they can crash unexpectedly – for example, most major share markets have fallen by 50% or more 3 times in the first 10 years of the 21st century. That’s far more than expected by traditional investment theory, which is built around the concept that time in the market is the key to
In our Australian ETF Review for May 2014 we reported that the industry had once again set a fresh record high, reaching $11.4B in funds under management. Total assets under management for the industry grew ~3% this month, an increase of $354m. Highlights of the report are set out below:
The little known, but powerful, reality is that around 80% of returns generated from an investment comes from simply selecting the “right” asset class. In this Portfolio Construction post, we introduce the concept of Strategic Asset Allocation and describe how investors can practically use ETFs in their investment portfolio.
Investors are rightly interested to know about the underlying assets held inside their investment products. Buying individual stocks gives you potential access to dividends and capital growth the company generates. But what about managed funds and ASX traded Exchange Traded Funds (ETFs) – what do they hold? We look further into this issue in this
Our Australian ETF Review for April 2014 reported that the industry had a record month which saw it break through the $11 billion barrier in funds under management. The market grew by 4.3% in the month, and has now grown approximately 50% over the last 12 months. Highlights of the report are set out below: