Most portfolios will benefit from a mix of passive and active strategies, as there are market conditions where one might do better than the other. ETFs now cover a wide range of structures, not only indexing.
ETFs have grown rapidly in popularity and diversity, but like managed funds, not all products will survive for the long term and there are consequences if a small-scale ETF is closed by its issuer.
This exclusive early access to IIR’s Monthly Report includes the latest recommendations on global LICs, and a summary of the Active ETFs listed on the ASX. There’s now a lot of choice in global listed funds.
A recent global survey revealed a lack of trust in investment firms. There are many areas for improvement such as disclosure, transparency, and conflicts of interest, and different LIC structures are examples.
It’s important to consider why a LIC is trading at a discount, as what might appear good value worth buying may be built into the price for many years, and the discount may even worsen.
Active ETFs have many similarities with actively-managed funds, but the key differences are due to investing via an exchange versus a platform. Investors now have another option to consider.
LICs can sustain their dividends not only from current year profits, but from reserves built up in prior years. This report looks at reserve levels as a sign of consistency of future dividends.
Labor’s proposed franking credit policy has already faced a number of unintended consequences, and the inequitable tax treatment of Listed Investment Companies much also be addressed.
The future of ETFs appears strong as the millennials increase their share of the investment pie, and the majority of financial advisers now comfortable with ETFs.
Plenty of LICs trade at a discount to their NTA value, often for good reasons, but there are opportunities to benefit from a narrowing of the discount if an investor knows what to look for.
The collapse of the Exchange Traded Note (ETN) linked to the value of the VIX was a warning to traders not to be complacent about volatility, and the entire market felt the impact.
ETFs are seeing the growth in popularity in Australia that overseas markets have experienced for many years, and they could reach $50 billion by the end of 2018. What will drive it?
2017 was a watershed year for LICs, not only because of the increase in issues, but the new features that address previous shortcomings.
I like to learn from history, but also look into the future. The articles chosen provide some of the essentials of good investing, but they also peer over the horizon on what the future might bring.