Insights | Page 43 of 44 | BetaShares

What is an Index?

Understanding how sharemarket indices work is a key to understanding how to use investments like Exchange Traded Funds (ETFs) many of which aim to replicate indices. We’re all familiar with the index of a textbook, but what does a sharemarket “index” tell us about the sharemarket?

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What is Net Asset Value and ‘iNAV’?

For any investment in an ETF we can assess  its “fair value” by comparing the market price for units (ie the price quoted on the ASX at which you can buy or sell) with the ETF’s “net asset value” or “NAV” per unit.  The NAV is essentially the market value of the ETF’s component assets

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How real is the stock market recovery?

The recent pullbacks in the US and Australian share market are a reminder of the inherent risk associated with equities. With the US market bursting through its record high levels (and then suffering as the tapering of QE and uncertainty around the strength of the US recovery resurfaced), and the Aussie market still trading below

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Emerging markets volatility – not all bad

Currently, emerging market shares and bond prices are generally experiencing increased volatility and falling prices. Although this is a direct result of tapering by the US Federal Reserve, it is also a healthy sign markets are starting to focus on investment fundamentals – and measured by these standards, many emerging markets don’t pass muster.

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What is a balanced portfolio and why is it important for me?

The GFC revealed the heavy asset allocation biases of many Australians who sustained heavy losses due to high allocations to (primarily domestic) equities. The events of the GFC led many Australians to look for a more conservative approach to investing. One such approach is to build a “balanced” portfolio, with allocations not only to equities,

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How Liquid are ETFs?

In this BetaShares Academy post we look at one of the most misunderstood concepts relating to ETFs – liquidity. To understand ETF liquidity, we need to dig into the concept of an “open ended” fund – and when we do, it becomes obvious why ETFs are typically described as having the same level of liquidity as

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