This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

ALFA - VanEck Australian Long Short Complex ETF

Jump to new

Dona Ferentes

Pengurus pengatur
Joined
11 January 2016
Posts
16,259
Reactions
22,194
The next evolution in ETFs. Explore ALFA’s innovative approach, which will be launching tomorrow on ASX.

We are pleased to announce our newest and upcoming ETF is the VanEck Australian Long Short Complex ETF (ASX: ALFA) — the first of its kind on the ASX. This actively managed ETF harnesses the evolution in technology and data science to take tactical long and short positions with the aim of outperforming the S&P/ASX 200 over the medium to long-term (after fees and costs).

ALFA key points:​

  • High conviction long short strategy
Unconstrained high conviction Australian equity portfolio that targets long and short positions.
  • Active systematic approach
A dynamic quantitative stock selection approach utilising sophisticated computations and programmed learning designed to be agnostic of market cycles and style rotations.
  • Outperformance potential
Alternate Australian equity strategy that aims to deliver excess returns over the medium to long-term.

ASX code:ALFA
Investment objective:Outperform the S&P/ASX 200 Accumulation Index over the medium to long-term (after fees and costs)
ASX commencement1:23 January 2025
Management fee:0.39% p.a.*
Performance fee:20% of Fund’s return above the Benchmark, subject to a high watermark
*Other costs may apply. Please refer to the
 

So, an ETF using AI to pick stocks?

Will be interesting to watch, or do I put 100 bucks on 13 black?
 
I'm very wary of this ETF. Sounds like a good idea but the devil is in the details.

Currently I've been unable to find out what this ETF is holding when it lists. What are they holding long and short? No information easily available. Red Flag!

20% performance fee each quarter if above benchmark high watermark. This sucks big time. If I want to take a risk with this type of fund I want the max reward that comes from it. I don't want to see 20% lost. Red Flag!
 

given how dangerous short-selling can be ,

i agree , i would want to know which markets ( they are shorting in ) at least

sure some shorts are obvious , but things can still go very wrong

neither Bell Direct nor Commsec were very helpful

Discover ALFA | VanEck’s Long Short ETF coming to ASX

Australian equity long short strategy, with the lowest management fee, is arriving on ASX. Learn how ALFA is revolutionising Australian equity approaches.
www.vaneck.com.au

this page goes nowhere near answering the questions one should be asking

although it at least mentions shorting ASX-listed stocks ( but where are they being borrowed from ??? )

one green flag is *** with the aim of outperforming the S&P/ASX 200 over the medium to long-term (after fees and costs). ***

most aim to beat benchmarks BEFORE fees and costs ( so they eat into potential returns , normally )


Long-short ETF launched | SMS Magazine

A new ETF will be made available to investors next week that will be the first to utilise a long short strategy to generate returns.
smsmagazine.com.au

now depending on 'the market-makers ' ( if any ) this MIGHT be a better short term trading vehicle ( considering there is no mention of distribution frequency ) ( less likely to be monthly or three monthly distributions )
 
So basically a hedge fund etf idea.

Regarding AI (not including HFT), is there any evidence this is any more successful than we hairless chimps? I'm skeptical.
 
wayneL said:
So basically a hedge fund etf idea.

Regarding AI (not including HFT), is there any evidence this is any more successful than we hairless chimps? I'm skeptical.
Click to expand...
at least until you have seen it trade , rightfully so

any investor ( in this ") would need to see a LOT more , for example is this a closed end or open-ended fund/ETF

remember 'high conviction translates to relatively large positions ( at least on the long -side )

what is the ratio between long and short positions , also 'high conviction ' MIGHT translate to using leverage on the long-side ( they will already be using some leverage on the short-side because they are borrowing the shares
 
wayneL said:
So basically a hedge fund etf idea.

Regarding AI (not including HFT), is there any evidence this is any more successful than we hairless chimps? I'm skeptical.
Click to expand...
Depends.

I agree with @peter2

Too little info on VEck site. Annnounced 17th Jan 2025. 5 Days ago. Seeking expressions of interest. I've registered today but nothing in my email yet. And it lists tomorrow 23rd Jan.

OKey Dokey.

gg
 
Garpal Gumnut said:
Depends.

I agree with @peter2

Too little info on VEck site. Annnounced 17th Jan 2025. 5 Days ago. Seeking expressions of interest. I've registered today but nothing in my email yet. And it lists tomorrow 23rd Jan.

OKey Dokey.

gg
Click to expand...
compared to the extended ( in-house ) documentation and research on MVW a very poor show
 
Garpal Gumnut said:
I found it on Commsec. No info there apart from a lot of dashes - - - where info should be.

gg
Click to expand...
it will be very enlightening to see if those dashes become more informative BEFORE market open today ( often the data takes days/weeks to fill )

Bell Direct is equally uninformative

so i assume it is a Morningstar thing ( since i believe they supply data to both )
 
The proof is in the pudding:
no i do not really want them to tell me monthly what their shares, put and call are, i would not expect them to be static but more a daily or less dynamic management.
What i want is result.. so i might put a small parcel if only to remember to track them, and follow the story.
If they beat asx200 after fees, then i am in instead of asx200 index...
 
I'm unfamiliar with an ETF/Fund using the combination of long/short trading as ALFA plan to do with predominantly large caps on the ASX. A number of thoughts.
  • The fund managers would need to have an "options mindset".
  • They are targetting mainly large cap stocks
  • Will perform better in a volatile market.
  • Is the ASX volatile enough?
  • Would it perform as well as a similar on the NASDAQ.
gg
 
some buyers lining up... $20.70ish

yes there's a PDS

ALFA - The first Australian equity long short ETF | Active, alpha strategy

Discover an active, deeply quantitative approach using advanced computations and programmed learning. Learn about ALFA now, the latest in ETF innovation.
www.vaneck.com.au

from brochure, their blurb

Rapid advancements in technology are revolutionising investment management. Systematic approaches are effectively mitigating variability and enhancing the quality of portfolio management decisions.

Harnessing the combination of an agile investment approach and computational power is now critical in giving portfolios an investing edge. With the VanEck Australian Long Short Complex ETF (ASX: ALFA), investors can now access this transformative strategy. ALFA is the next evolution of ETFs and is the first of its kind on ASX. It employs an actively managed, high conviction, benchmark and style-agnostic approach for Australian equities.
 
type in Absolute in Search, and you get at least 4 LITs that operated with similar aims... "agnostic, rising and falling markets", etc

MA1, ABW, AEG, FTA

None are still around. ..the promise was good but the reality less so.
 
Dona Ferentes said:
type in Absolute in Search, and you get at least 4 LITs that operated with similar aims... "agnostic, rising and falling markets", etc

MA1, ABW, AEG, FTA

None are still around. ..the promise was good but the reality less so.
Click to expand...
add in LSF in the LIT column but not exclusively focused on ASX listed companies ( just predominantly so )

would have to see more fine print before i took my wallet anywhere near ALFA , , but agile traders they might just have a new toy although the market-makers seem to be only playing with 5000 share bids ( each ) 10,000 ( because there are two of them ) x $20 ( roughly ) is roughly $200K ...

is that liquid enough for an active ( retail ) trader ??
 
I believe this is just an etf buy sell facility: there is not a John Smith buying a X and a James Brown selling at X + fixed pc
As long as my orders are below 5 or 10k units..
 
it would be fair to say that 99.99% of market participants would recognise that that is not a viable strategy
 
You must log in or register to reply here.

Similar threads

QSML - VanEck MSCI International Small Companies Quality ETF
Replies
2
Views
349
Bellcose
B
MQEG - Macquarie Core Global Equity Active ETF
Replies
5
Views
743
divs4ever
ZYAU - S&P/ASX 300 High Yield Plus ETF
Replies
0
Views
1K
divs4ever
QUAL - VanEck MSCI International Quality ETF
Replies
1
Views
1K
frugal.rock
VETH - Vanguard Ethically Conscious Australian Shares ETF
Replies
14
Views
2K
Garpal Gumnut
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...