Large volumes, and very easy job, they don’t need to employ high income stock pickers and pay them large bonuses, they just employ people that buy according to the index.yes some rivals were starting to get competitive
am still wondering how these ETFs make a reasonable profit though , i bet the management doesn't come cheap ( those computers need upgrades every so often )
VAS Portfolio Turnover 0.82%
A200 Portfolio Turnover 4.71%
STW Portfolio Turnover 2.46%
IOZ Portfolio Turnover 4.34%
some seem to be less 'passive' than others , ( i would have thought VAS would turn over more than the rivals with roughly 100 more stocks held )
well ' the index ' is calculated from outside the fund manager so is likely just a subscription cost , and the trading ( mostly ) can be automated ( except for big moves like the BHP-WDS split/merger ) , but there is still plenty of paperwork and compliance stuffLarge volumes, and very easy job, they don’t need to employ high income stock pickers and pay them large bonuses, they just employ people that buy according to the index.
Also, Vanguard is member owned, it has no shareholders, so no push to make profits.well ' the index ' is calculated from outside the fund manager so is likely just a subscription cost , and the trading ( mostly ) can be automated ( except for big moves like the BHP-WDS split/merger ) , but there is still plenty of paperwork and compliance stuff
you hopefully pay good wages to the staff you have so they do a quality job , but 0.0x% per year is a very slim margin
you hopefully pay good wages to the staff you have so they do a quality job , but 0.0x% per year is a very slim margin
I find the problem here being the share price restricting smaller holdings participating in the DRP, otherwise, I might have a holding.i hold VAS ( basically my DRP shares left running , and still participating in the DRP , but maybe
well ' the index ' is calculated from outside the fund manager so is likely just a subscription cost , and the trading ( mostly ) can be automated ( except for big moves like the BHP-WDS split/merger ) , but there is still plenty of paperwork and compliance stuff
you hopefully pay good wages to the staff you have so they do a quality job , but 0.0x% per year is a very slim margin
that seems to be the wider trend , however some tasks are better done in-house ( in a good company ) off-shoring works well in most cases most of the time , but take the BHP-WDS deal real decisions had to be made and do the restructure smoothly , there will be other deals that still require decisions coming when the circus falls off the trapezeI'd wager that many of their IT and back office processing type roles would've been offshored to cheap labour places (not naming names of course), just like what every other insto has been doing for the last decade or so.
Old people have more moments, now where was I ?computers have their moments as well
How much of a holding do you need to have to participate? I've been sitting on a stash and waiting for armageddon, to enter.I find the problem here being the share price restricting smaller holdings participating in the DRP, otherwise, I might have a holding.
I assume you have read the PDS and know what VAS ETF actually is. If not:
View attachment 158017
View attachment 158018
The effort and cost involved in creating the relevant ETF reflecting the underlying fund is bugger all of nothing.
How much of a holding do you need to have to participate? I've been sitting on a stash and waiting for armageddon, to enter.
yes doesn't the math look complicated when looking for tracking error , i would guess each fund rebalances to fund regularly ( not just 3 monthly with the S&P index changes the rise of BKL ( and it's probable departure ) and PME both fairly illiquid but included in the XJO can be cumbersome , another interesting time is when the BIG banks go ex-div. ( but the ETFs track the daily NTA of the portfolio )I'd be interested to see if there was any sort of (inverse) correlation between turnover and tracking error. I'd imagine it boils down to differences in operational methodology eg. if they were using some sort of tolerance limit to decide whether they should go and adjust a position to bring its portfolio weight back into line with the index weight, in which case perhaps the ones with higher turnover are more frequently/stringently adjusting their positions to match the index weights, so in theory they should have lower tracking error.
Well that's a relief, I thought you might have to buy a 1,000, the way frugal was hyperventilating. ?One unit.
However, you will not be allocated any additional units under the DRP until the carry-forward balance is sufficient for that to occur.
That's if you're buying on market. If you're doing it through one of those stake type of brokerages, you appear to be allocated a fraction of a unit but really all you have is "an interest in" a portion of a unit.
They have a non listed equivalent fund that allows smaller cost free cash additions. not sure if that fund has a DRP.I'd like to treat it like a bank savings account, put a chunk in every 3 or 6 months and have it all compounding itself. Current price knocks that idea if you dont have a fairly big chunk to start.
What's the ROI PA on one unit?Well that's a relief, I thought you might have to buy a 1,000, the way frugal was hyperventilating. ?
I'm just having a winge for the little guy.They have a non listed equivalent fund that allows smaller cost free cash additions. not sure if that fund has a DRP.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?