Are there any Index Funds in Australia?

[Warren Buffet II]

Hi guys,

Do you know any Managed fund that follows an Australian Index? I would like to have the name of the fund and the index.

Regards.

 

[ghotib]

Re: Is there any Index Fund in Australia?

Have you looked at Vanguard? I've got an idea that they base their whole business on following indexes.

Ghoti (still wondering about the use of sector indexes in individual trading plans)

 

[wayneL]

Re: Is there any Index Fund in Australia?

There a few exchange traded index of them on the US boards. But from memory I think Streettracks or something tracks the S&P 200.........

Yes just looked it up, STW tracks S&P 200 and SFY tracks the s&p 50.

What's better is that these are exchange traded funds. i.e. you can trade in and out of them at will,with no costs other than brokerage.

Cheers

 

[baglimit]

Re: Is there any Index Fund in Australia?

i had done a bit of research into streettracks about 2 years ago when the market was nose diving - thought it a good way into the general rise of the market, without missing out due to being too selective. $27.50 was a great buy price back then. they have as you would expect risen with the asx200 & asx50 as it has marched beyond 4100. strongly considering moving them on after the reporting season to re-assess where it will all be going. a good place to 'plonk' the vast majority of your cash if unsure which direction (sector) to take, as long as you think the market is heading up.

 

[money tree]

Re: Is there any Index Fund in Australia?

ASX 200 CFD offered by a few market makers such as CMC or IGindex.

1% down and divs received

but is now a good time to be looking into such an idea?

are there any good bear funds?

 

[wayneL]

Re: Is there any Index Fund in Australia?

ASX 200 CFD offered by a few market makers such as CMC or IGindex.

1% down and divs received

but is now a good time to be looking into such an idea?

are there any good bear funds?

divs?

 

[tech/a]

Re: Is there any Index Fund in Australia?

ASX 200 CFD offered by a few market makers such as CMC or IGindex.

1% down and divs received

but is now a good time to be looking into such an idea?

are there any good bear funds?

Bear Funds?

 

[RichKid]

Re: Is there any Index Fund in Australia?

Vanguard is one I've checked out too but just because it's an index fund doesn't mean they always match it. They have low fees but it still eats into your profits and when the AllOrds is 15% down for the year they maybe 15.5% down. They have a much better reputation in the US (vanguard). I think they target the older age groups and stress how low their fees are relative to growth managers. I just don't like fund managers, waste of money, better to put it in a cash ac imo (ING Direct).

 

[RichKid]

Re: Is there any Index Fund in Australia?

There a few exchange traded index of them on the US boards. But from memory I think Streettracks or something tracks the S&P 200.........

Yes just looked it up, STW tracks S&P 200 and SFY tracks the s&p 50.

What's better is that these are exchange traded funds. i.e. you can trade in and out of them at will,with no costs other than brokerage.

Cheers

Thanks Wayne, looks like there are stacks of these in the US.

I'm looking at STW as an alternative to other XJO trading instruments- I wonder if we have to pay a management fee (eg MER's are mentioned on the ASX site), I have a feeling it's probably incorporated in the spread in some way or the NTA so it tallies with what you say about brokerage being the only cost. STW goes ex-div on 26th June.

 

[Realist]

Re: Is there any Index Fund in Australia?

are there any good bear funds?

I know of one!!


It is called a high interest bank account.

 

[Judd]

Streettracks ASX 200 (STW). Management expense ratio is 0.289%. Last two distributions totalled $2.53 (franked to about 80%).

 

[suhm]

Was looking at etf as well and SFY is the streetTRACKS S&P/ASX 50 Fund and SLF MER .286 is the streetTRACKS S&P/ASX 200 Listed Property Fund MER .4 but their liquidity can be quite low

 

[RichKid]

Do the streettracks funds make you pay them the MER if you buy on market or is it just like a share trade with no further costs/fees?

 

[Judd]

Do the streettracks funds make you pay them the MER if you buy on market or is it just like a share trade with no further costs/fees?

No. You buy on market at the price you decide to pay. The managers take their cut -which at around 0.29% is less than Vanguard's 0.9% - from the profits of the fund. It is just like any managed fund, ie, the managers fee comes from the income first (which is why you can get a "high" - don't that literally - franking above 30%). Unlike share dividends, fund distributions - including STW - when paid must be included for the financial year past (when they accrue) as opposed to when they are received.

If you don't understand that; don't invest.

 

[Judd]

Just to note that STW has indicated that its distribution to the end of this fin year will be about $2.45 per unit. Total distribution for 06/07 is around $3.40.

Not too bad for doing bugger all.