Global equities inched ahead only 0.3% in June, after recent solid monthly gains. Weakness in oil prices, talk of central bank tightening, and tech valuations were of concern to investors in the month. Although further consolidation is possible nearer-term, the medium-term outlook remains encouraging due to a broadening global economic recovery and still low
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
Given the prospect that global bond yields will eventually rise from today’s exceptionally low levels, the risk of capital loss may constrain the returns from traditional fixed-rate bonds in coming years. Against this backdrop, wouldn’t it be nice to own a bond that actually benefits from rising interest rates? As this note will demonstrate, such
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.
It’s that time of year again to start making some financial resolutions and review your portfolio. Last year, we were addressing some portfolio ideas in light of the volatility in markets. As I write this year, by contrast, volatility in markets is at multi-year lows (over 50% lower than this time last year). So like
Continued industry growth and inflows into Australian Equities ETFs The Australian ETF industry recorded another strong month of growth, with total industry FuM at the end of May hitting a new high as the industry nears the $30B mark. Total industry FUM at month end was $29.0B, with growth of 2.6% or $730M for the month.
A claim currently receiving renewed attention in the long-contested active versus passive investment debate is that the apparent outperformance of passive investment strategies is largely cyclical, and usually only takes place in the late stages of a bull market. This note, however, argues that while there may well be an element of cyclicality in passive
The MSCI All-Country World Equity Total Return Index rose a further 1.4% in May, after a 1.3% gain in April, to make it seven consecutive monthly increases. Helped by solid underlying earnings growth, declining bond yields and still reasonable price-earnings valuations, the tech-heavy Nasdaq-100 Index posted particularly strong gains. The outlook for equity markets generally
The BetaShares S&P/ASX 200 Resources Sector ETF (“QRE”) was the very first ETF launched by BetaShares in December 2010 (we’ve now launched 40!). It consists of the largest Australian resources stocks by market capitalisation that is part of Australia’s benchmark S&P/ASX 200 Index. Whilst the resources sector is a major component of the Australian economy,