Insights | Page 52 of 53 | 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?

Read more

What is Net Asset Value and ‘iNAV’?

What is the NAV?
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 (eg shares in the case of an equities ETF) minus management fees,

Read more

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 its pre GFC peak,

Read more

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.

Read more

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,

Read more

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 the underlying assets of the fund.

Read more

BetaShares Australian ETF Review – November 2013

Today we released our Australian ETF Review for November 2013, which reported that the Australian ETF Industry grew for the 18th consecutive month in a row, reaching a fresh record high of $9.6B in funds under management. ETF industry assets grew 3.2% ($297 million) in November with the bulk of the growth ($210 million) attributable to new money rather than market performance.

Read more