Choosing an ETF

Pat's estimator is here: LIC NAV Estimator

I found his estimator while researching long term investments. Ended up going with ETFs and a lot of good info for Aussies is located here: Passive Investing Australia

I've done system trading for maybe 15+ years. Done ok but totally over it and wanted to stop and minimise the effort.

Money is now in 4 x ETFs.

Newbunymo said:

I know its a bit late, but I recently started investing in EFTs and it turns out there are some really options......

Click to expand...

an ever expanding field. (Not for me, it's too confusing; the plenitude of options resolves nothing).

for those interested, FirstLinks provides links to overviews and resources:




Other ETF Resources

Dona Ferentes said:

an ever expanding field. (Not for me, it's too confusing; the plenitude of options resolves nothing).

Click to expand...

ever expanding , absolutely , i got into VAS early in my investing adventure as insurance + growth potential

if i hadn't been looking for growth any of the top 200 index funds probably would have done the job in 2011 ( the market recovery since then did the real lifting , along with the DRP on quarterly divs )

i still prefer a LIC over an ETF when the decision is tight , i don't mind paying the extra fee for an active manager that gets results ( most of the time ) , but watch out for the ones that use Mickey Mouse benchmarks

however some ETFs offer exposure to difficult ( and niche ) areas , say where i do not want to buy ' the whole Asian market ' but just one nation or certain sectors in the local or global market

however this quirkiness comes at a cost both in liquidity ( less chance of an easy exit ) and higher fees , sometimes buying an Aussie major miner or bank , will do plenty for the laid-back investor ( as would say WES bought in 2015 or before .. or after if you didn't really like COL , WES went below $31.50 after the COL demerger )

research is very important in ETFs once an ETF is floated most of it is handled by computer so only MAJOR issues are handled by a human interaction ( like they had to change the internals of HVST to stop it happily churning shares until zero , a real fund manager might have spotted the problem in the first year )

so with an ETF if using a complex formula can start digging a hole very quickly ( or been dumbstruck by an unforeseeable event , like negative $US 43 a barrel oil )

will dig into the links

thanks and cheers

Well D'oh!

"A proliferation of exchange-traded funds (ETFs) that invest with a theme or which are designed for short-term trading rather than long-term investing has produced a major performance gap between the best and worst over the past five years.

While the best-performing ETF listed on the Australian Securities Exchange produced an average annual compound return of almost 18 per cent over the past five years to October 31, the worst performer has returned an average annual compound of more than minus 28 per cent."