ETFs - Exchange Traded Funds?

[svetsi]

I'm going to move some money into an ETF sooner or later but wanted to get a good overview of all the ETF's Australia has to offer.

I can find a list on Wikipedia and allot of Fund Managers like Vanguard list these, but I was wondering if there was a central source of ETF's which can be bought and sold on Australian exchanges?

Would anyone know?
Thanks

 

[Iggy_Pop]

Morningstar has a list of ETFs, and there is also a good one on the ASX site.
https://www.morningstar.com.au/ETFs
https://www.asx.com.au/products/etf/managed-funds-etp-product-list.htm

 

[greggles]

This website might be useful to you: http://www.etfwatch.com.au/

 

[svetsi]

Thanks very much for the help!

 

[divs4ever]

It pays to look under the hood of ETFs​

It pays to look under the hood of ETFs

Since the rise of ETFs, there has been a focus on fees. Yet, investors should also understand the different indices that funds are benchmarked against and the ETF managers because these too can impact investment outcomes.

www.firstlinks.com.au

don't just look , use a calculator and microscope ( and a financial adviser if confused by some of the jargon )

but in saying that i hold several ETFs ( and still get scorched here and there , and score some winners )

 

[Belli]

Absolutely one should look under the hood with ETFs. Especially when an article is penned by the Managing Director and CEO of VanEck (a sponsor of Firstlinks) or by any other provider who may be talking up their own book.

 

[divs4ever]

4 tips and tricks every ASX ETF investor should know​

4 tips and tricks every ASX ETF investor should know

ETF investing comes with its own set of nuances. These tips and tricks will help you better navigate the ever-evolving ETF landscape.

www.marketindex.com.au

 

[Dona Ferentes]

A flood of investors into global equities has helped push the Australian exchange-traded funds market to a record high as fund managers scramble to get in on the action.

The ASX’s ETF market grew by 36 per cent to $199 billion in the 12 months until the end of June 2024, according to the exchange operator. When combined with ETFs listed on competitor exchange Cboe, that puts the Australian market above $200 billion.

 

[divs4ever]

Exchange Traded Funds (ETFs) in Australia​

List of ASX Exchange Traded Funds (ETFs) - Market Index

List of every ASX traded ETF grouped by sector and region. Get fund details, benchmark and fees. One click access to share price data and charts.

www.marketindex.com.au

might be a useful starting point for novices and researchers

plenty more to research once you spot something interesting

 

[peter2]

Betashares started another ETF (see MTUM) and it currently holds CBA. Betashares holds CBA in multiple ETFs. It won't be long before an ETF company like B becomes a significant holder (>5%) of many ASX large cap companies.

Will they know this if it happens? Will they disclose this to the ASX?

How long before the ETF industry holds more than 15% of an ASX large cap and asks for a seat on the board?

I suppose we can already wonder if a large superannuation company doesn't already own more than 5% of a large cap ASX company and the whole industry could hold a few seats on company boards.

 

[sptrawler]

Betashares started another ETF (see MTUM) and it currently holds CBA. Betashares holds CBA in multiple ETFs. It won't be long before an ETF company like B becomes a significant holder (>5%) of many ASX large cap companies.

Will they know this if it happens? Will they disclose this to the ASX?

How long before the ETF industry holds more than 15% of an ASX large cap and asks for a seat on the board?

I suppose we can already wonder if a large superannuation company doesn't already own more than 5% of a large cap ASX company and the whole industry could hold a few seats on company boards.

Didn't Australian super buy a large stake in Origin, to block a takeover?

 

[qldfrog]

Betashares started another ETF (see MTUM) and it currently holds CBA. Betashares holds CBA in multiple ETFs. It won't be long before an ETF company like B becomes a significant holder (>5%) of many ASX large cap companies.

Will they know this if it happens? Will they disclose this to the ASX?

How long before the ETF industry holds more than 15% of an ASX large cap and asks for a seat on the board?

I suppose we can already wonder if a large superannuation company doesn't already own more than 5% of a large cap ASX company and the whole industry could hold a few seats on company boards.

Superannuation funds are already powerful enough to force some crappy creepy ESG agendas on companies at board meetings.
I have an actual problem when some employees of super funds, with no pie in the game (is it the expression ?) push a political agenda often against financial interests of both super fund and companies, and with no consequences to their own lives.
As for competition between funds.. let's ROL
For ETFs, they are financially interested, but at a risk of collusion and their interest is global, so potentially against a specific company.
Super funds and ETFs are 2 new rorts in the share market..which was not really needing more already imho

 

[Bellcose]

Vanguard was relatively quick this year in issuing its AMIT annual tax statements today. A quick check I have all the necessary information and submit to accountants tomorrow. Then a matter of waiting to find out how much I owe.

 

[divs4ever]

Macquarie Asset Management

Macquarie ETFs

Discover Macquarie ETFs. Active ETFs backed by Macquarie's global investment expertise, now available through a simple trade on a stock exchange.

etf.macquarie.com

i came across this shuffling around today

that might interest some

i hold MQG ( free-carried )

now i was looking through this , not so much to buy a new ETF or two but to help decide whether i retain or sell the existing MQG holding

i did note that

Macquarie Core Australian Equity Active ETF (ASX:MQAE)​

while it only charges a 0.03% pa of the net asset value of the Fund

it ALSO charges

Performance fee	20% of the cumulative outperformance of the Fund (after the management fee and expenses) above the return of the Index, subject to a high watermark.
Distribution frequency	Generally quarterly

'generally ' ?

so i recommend you dig very very carefully into these ETFs before parting with your cash

( i spend over a week researching/thinking on EVERY ETF i consider putting cash into

and that research has helped me dodge a few bullets )

PS please read ALL the fine print , those tiny details can make BIG differences to your outcomes

 

[divs4ever]

How ETFs and indexes cope with company delistings​

How ETFs and indexes cope with company delistings

The complexion of a stock market is ever-changing, with companies coming and going. But what happens to indexes, and the ETFs that use them as benchmarks, when a company is removed because of a merger or acquisition?

www.firstlinks.com.au

might be useful to some readers as well

 

[So_Cynical]

Macquarie Asset Management

Macquarie ETFs

Discover Macquarie ETFs. Active ETFs backed by Macquarie's global investment expertise, now available through a simple trade on a stock exchange.

etf.macquarie.com

Macquarie Core Australian Equity Active ETF (ASX:MQAE)​

while it only charges a 0.03% pa of the net asset value of the Fund

it ALSO charges

Performance fee	20% of the cumulative outperformance of the Fund (after the management fee and expenses) above the return of the Index, subject to a high watermark.
Distribution frequency	Generally quarterly

'generally ' ?

so i recommend you dig very very carefully into these ETFs before parting with your cash

( i spend over a week researching/thinking on EVERY ETF i consider putting cash into

and that research has helped me dodge a few bullets )

PS please read ALL the fine print , those tiny details can make BIG differences to your outcomes

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.

 

[Dona Ferentes]

How ETFs and indexes cope with company delistings​

• Tony Kaye

Share markets are ever changing. Companies come, and companies go.
But what happens to share market indexes, and the exchange traded funds (ETFs) that use them as performance benchmarks, when a company is removed because of a merger or acquisition?

Source: ASX.com.au
One doesn’t have to look too hard to find some recent, high-profile examples of company delistings from the Australian Securities Exchange (ASX).
After more than 60 years on the ASX, the building products company CSR that started life in 1855 as the Colonial Sugar Refining Company was delisted in July following a $4.3 billion takeover by French construction group Saint-Gobain.
The construction materials company Boral (which listed in 1946 as Bitumen and Oil Refineries (Australia) Limited) also left the ASX in July after its $1.5 billion acquisition by Seven Group. Likewise, the bauxite mining and aluminium refineries investment group Alumina delisted from the ASX following its $3.4 billion takeover by U.S. giant Alcoa.
All up there have been 67 ASX delistings so far in 2024, including other high-profile removals such as concrete group Adbri (sold for $2.1 billion to Irish group CRH in July), and fruit and vegetables company Costa Group (sold for $1.5 billion to U.S. private equity group Paine Schwartz in February).

Understanding index construction​

All of the companies mentioned above had been included in various ASX indexes, such as the All Ordinaries Index and S&P/ASX 300 Index, based on their market capitalisation.
Share market indexes are structured to track the broad performance of markets and specific sectors, typically by tracking the share price returns of the companies that have been included in the index.
For example, the S&P/ASX 300 Index tracks the returns of the top 300 ASX companies based on their market capitalisation. In turn, the Vanguard Australian Shares Index ETF (VAS) uses the S&P/ASX 300 Index as its performance benchmark.
So, what happens to indexes and ETFs when companies effectively vanish from a share market?

Index rebalancing​

Indexes are rebalanced on a regular basis as part of scheduled reviews to ensure benchmarks stay up to date and continue to accurately reflect their purpose.
ETFs and unlisted managed funds tracking an index will adjust their own portfolio holdings in tandem with any changes made to the benchmark index.
On the ASX, scheduled rebalancing changes typically take effect after the market close on the third Friday of March, June, September, and December.
The S&P/ASX 300 is rebalanced semi-annually, effective after the market close on the third Friday of March and September.
Eligible stocks are considered for index inclusion based on their rank relative to the stated quota of securities for each index.
But company deletions also can occur between index rebalancing dates due to acquisitions, mergers and spin-offs or due to suspension and bankruptcies. The decision to remove a stock from an index rests with the index provider and will be made once there is sufficient evidence that a transaction will be completed.
Company delistings will typically trigger an intra-rebalancing process if an index level is comprised of a fixed number of companies. But not all indexes are based on a fixed count.
The S&P/ASX 300 and All Ordinaries are not fixed count indices, so intra-rebalancing additions are only made when a replacement added to the S&P/ASX 200 (or a higher index) is not a constituent of the S&P/ASX 300 and All Ordinaries.
Index additions are made according to various criteria as laid out in their respective methodologies. For the S&P/ASX300, market capitalisation, free float and liquidity are some of the criteria considered, whereas for the All Ordinaries Index, there is no liquidity screen or minimum float requirement.
The reference date used to determine an ad-hoc index replacement is determined on a case-by-case basis and taken closer to the time of the event that triggered the vacancy.
More information on how indexes are rebalanced on the ASX can be found in S&P/ASX Australian Indices Methodology.

Tony Kaye is a Senior Personal Finance writer at Vanguard