What ASX stock tracks the XAO/XJO?

[RazzaDazzla]

Sorry for the stupid question.

In some previous reading I came across an ASX stock (not index) that tracked either the XAO or XJO exactly.

From memory, if the XJO was at 4700, this stock would trade at $47.00.

Can anyone tell me the code?

Cheers

 

[bilo83]

The XJO ETF is STW. There is no ETF over the All Ords, but Vanguard has an ETF that tracks the S&P/ASX300 which is VAS.

 

[RazzaDazzla]

The XJO ETF is STW. There is no ETF over the All Ords, but Vanguard has an ETF that tracks the S&P/ASX300 which is VAS.

Thanks bilo...

I just comapred XJO with STW.
XJO = 4658
STW = 43.70

I thought they were a little more on par with each other. Are there movements the same? eg. 5% drop in XJO = 5% drop in STW? I'm gussing the usual market influences such as supply and demand would be in play with STW. So if the market was bearish the XJO; then STW would be trading lower in advance of the XJO.

Likewaise, if the market turned bullish on the XJO; STW would be trading at a higher premium to the XJO.

Is this assumption correct?

 

[bilo83]

The movements are very close. STW tracks its NAV, which is based on the S&P/ASX200 basket. STW can diverge from the 200, but not too far as market makers can arb by swapping the index constituents with units of STW so the prem/discount doesnt get as wide as a closed end fund. Its not like a future or CFD where $1 = 100 points or anything.

Have a look on their site
http://www.spdrs.com.au/broker_baskets/index.html

 

[skc]

Thanks bilo...

I just comapred XJO with STW.
XJO = 4658
STW = 43.70

I thought they were a little more on par with each other. Are there movements the same? eg. 5% drop in XJO = 5% drop in STW? I'm gussing the usual market influences such as supply and demand would be in play with STW. So if the market was bearish the XJO; then STW would be trading lower in advance of the XJO.

Likewaise, if the market turned bullish on the XJO; STW would be trading at a higher premium to the XJO.

Is this assumption correct?

The dollar price figure doesn't matter. Movements are pretty well tracked. Just pull out a chart and see for yourself.

There are enough arb traders out there to ensure any spread between STW and XJO is never too large...

 

[So_Cynical]

Thanks bilo...

I just comapred XJO with STW.
XJO = 4658
STW = 43.70

I thought they were a little more on par with each other. Are there movements the same? eg. 5% drop in XJO = 5% drop in STW? I'm gussing the usual market influences such as supply and demand would be in play with STW. So if the market was bearish the XJO; then STW would be trading lower in advance of the XJO.

Likewaise, if the market turned bullish on the XJO; STW would be trading at a higher premium to the XJO.

Is this assumption correct?

Tracking funds tend to track...STW has a market cap of over 2 billion so its very liquid and very fast to mirror the index it tracks....1 year comparison chart below.
~

 

[SilverRanger]

I wouldn't call STW liquid given it took me half an hour to exit my position at a price that matches the XJO.
The trading volume really isn't that high

 

[So_Cynical]

I wouldn't call STW liquid given it took me half an hour to exit my position at a price that matches the XJO.
The trading volume really isn't that high

So it took you half an hour to exit at market? STW has averaged around 20 million worth of shares per day this week....my point was that if you need to exit immediately you always can, assuming you don't need to sell millions of dollars worth.

 

[SilverRanger]

I guess it's the words "very liquid" that buzz me, that's the term I used to describe BHP, RIO and the like, or the US market. If you look at BHP, $20 millions turn over is really just 10 minutes of transactions.
Half an hour might be a bit exaggerated, but it was definitely long enough that got me frustrated (the market makers were at lunch?)