One of the longstanding attractions of the Cuffelinks newsletter is its role not just as a platform for discussing investment ideas, but also as a source for unbiased and dispassionate analysis of the actual ‘business’ of delivering investment services to investors.
In this regard, I’ve naturally found it particularly interesting to follow the ongoing discussion around the use of exchange traded funds (ETFs) and the (somewhat) associated age-old active versus passive debate. What follows are six of the articles I’ve found especially enlightening from the Cuffelinks archives.
1. Provides an unbiased and realistic assessment of the pros and cons of indexing investing, especially through ETFs, from one of the leaders of the global investment industry.
2. Usefully introduces the concept of investing by global thematic, rather than just passive asset class exposure or individual stocks
3. Notes the challenges of innovating in an industry dominated by complexity, consumer apathy, strong existing players and hidden costs
4. Explains the open-ended structure of ETFs and dispels some of the myths related to their liquidity.
5. Outlines some handy rules to keep in mind when investing and trading in ETFs
6. A breakdown of the various costs related to adviser, investment and administration services.
Alex Vynokur, Guest Editor
Alex Vynokur is Managing Director of BetaShares Capital Limited. BetaShares is a sponsor of Cuffelinks.