ETFs vs LICs

[divs4ever]

The A to Z of ASX ETFs​

The A to Z of ASX ETFs

If you’re new to investing or even if you’ve been investing for a while but haven’t yet explored the world of ETFs, this article is for you!

www.livewiremarkets.com

i hold a selection of both ETFs and LICs

each has their flaws and strengths

 

[Gretsch]

The A to Z of ASX ETFs​

The A to Z of ASX ETFs

If you’re new to investing or even if you’ve been investing for a while but haven’t yet explored the world of ETFs, this article is for you!

www.livewiremarkets.com

i hold a selection of both ETFs and LICs

each has their flaws and strengths

Ditto

 

[divs4ever]

Why LICs may be close to bottoming​

Why LICs may be close to bottoming

Investor disgust, consolidation, de-listings, price discounts, activist investors entering - it’s what typically happens at business cycle troughs, and it’s happening to LICs now. That may present a potential opportunity.

www.firstlinks.com.au

i disagree with the title , i see more downside ( especially if the XJO now at record highs starts to retrace )

i hold several ETFs as well as PL8 , AUI ( a recent buy ),BKI and several other LICs not mentioned in the article and currently have an order for QRI in the market

i have recently exited QVE rather than take the Wilson's deal

 

[Ferret]

It's nearly a year since my last post on this thread and until recently the price to NAV ratio hasn't improved much for the LICs I have been watching. All (bar MIR) have continued to trade at substantial discounts to their NAV.

The recent pull back in markets has seen the discount start to reduce. LIC prices are falling, but ETFs such as A200 and VAS are falling faster.

I believe there is a strong chance that markets will fall a good deal more over the next few months and I'm pondering a strategy that might be able to take advantage of this.

If the fall continues, I believe we will see LICs trading above their NAV some time this year. My proposed strategy is to sell down the AFI, ARG and DJW LICs that I hold at this time. I would invest the proceeds in A200, which would have fallen further than the LICs by my theory. It might take years, but eventually markets will recover and the LICs may trade at a discount to NAV again, at which time I can sell down the A200 and reinvest in the LICs.

This strategy involves a bit of work and wouldn't appeal to many who hold LICs and ETFs for the sake of simplicity. I find a bit of trading in the market fun, so it lets me hold safe but boring LICs and ETFs and still have that fun.

Apart from my record keeping work, I will need to consider the CGT costs of the strategy. Brokerage is another cost, but not likely to be material.

Any thoughts from the ASF brains trust welcome!

 

[divs4ever]

well i buy LICs based on dividend yield ( and their investment focus/style ) so a LIC trading at a 20% discount isn't tempting until the YIELD is attractive AND most of my held LICs 'smooth the divs. ' so you have a fair guide to the divs in the coming two years

HOWEVER ETFs trade ( with the help of the market makers ) very close to their NTA ( and the div. payouts can be quite volatile )

currently i am trying ( unsuccessfully ) to add to some LICs that focus on small/mid. cap. stocks

but SOON if the market keeps sliding , i will be looking an ETFs hoping the share prices will drop quicker than the future div. yields .

good luck on your strategy , this is a very uncertain market , maybe you ( and i ) can time it correctly , or near enough