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ETFs - Exchange Traded Funds?

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Today’s paper AFR -

 
So_Cynical said:
Its an Active fund, so they are punting a bit looking for out performance to get the fee, everything one needs to know is in the title.
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yes , but are they likely to out-perform most of the time , all that buying/selling that may happen incurs costs

the unit-holders want a reasonable amount of returns to make the higher fees justified

now SOME active LICs ( and other managed funds ) select an obscure benchmark and a performance hurdle that seems to be laying on the floor

and that is one important place to research ( is it a realistic benchmark , say mirroring the XJO or XAO )
 
divs4ever said:
well i hold several Betashares products , and those 'thematic ETFs ' , never really attracted my interest , of course my focus away from the US/EU had a lot to do with that
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Wasn't it a good idea to access international or US thematic shares easily from Australia..we do not have easy way to do that otherwise.
I do not really care as i can go NYSE, but not everyone can with a low fee
 
qldfrog said:
Wasn't it a good idea to access international or US thematic shares easily from Australia..we do not have easy way to do that otherwise.
I do not really care as i can go NYSE, but not everyone can with a low fee
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they mostly offered a solution to a problem i didn't want to solve

it seems a fair number of investors didn't need to solve those problems

maybe Betashares ( or someone else ) will now offer an ETF that scratches an itch i actually notice

( i am still more focused on Asia as the better growth potential , but trying to currently avoid Japan and South Korea , and lukewarm on China )

i have a very large number of individual holdings ( including REITs , LICs , ETFs and one ASX-listed managed fund ) i really don't need a finger in every pie , but two or three fingers in some pies , is more my style
 
qldfrog said:
Why? Peter if i can ask respectfully.
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They're created by greed in order to raise capital from unthinking and naïve investors in a current theme that's "hot". They're created when most of the constituents are "hot" and probably expensive (overbought).

Most of these themes have no intrinsic value. What's the metaverse worth? Is it an essential business?

MTAV performed quite well because it held tech companies, not because these companies were involved with the metaverse. 2024 was an extremely bullish year for big tech companies. MTAV got lucky. MTAV was never going to attract new investors when the theme isn't hot.

To thrive and constantly attract new investors an ETF must be capable of refreshing its constituents. Cull the losers and include new winners like the index ETFs.
 
Semi, gold miners junior vs established, urnm, thematic etf is shere you should go imho to build a portfolio, and thry are often worldwide.
As for the extreme, that metaworkd bs, is it really worse than CBA with pe of a unicorn or msb with the history of a tatooed convict?
I am far less negative on the concept.
I do not play with these on the asx because my super fund does not allow me access, something i am not happy with, and for own portfolio, i go straight to the US market with very small broker fees, but otherwise, i would be...
 
I suspect these particular ETFs are not created due to overwhelming demand by the majority of the population. They are niche and only those who have an interest will invest but they may also attract those who tend not to closely examine them but are attracted by gaudy baubles. My feeling is the providers couldn't care less and it's more of a factor of "Let's create this and see if they come." Heck, it's probable many investors in these don't even know which body created the index the ETF is supposed to mimic and if that index is a valid one.

I must admit I am a person who doesn't follow the gyrations of the share market closely much less thematic ETFs so I could be entirely wrong in my thinking.
 
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