Most of us have seen ourselves as stock pickers extraordinaire at some point in our investing journeys. The idea of investing in stocks is exciting, seductive even. After all, all you need to do is press buy and sell online and you could make yourself a fortune.
Most of us have seen ourselves as stock pickers extraordinaire at some point in our investing journeys. The idea of investing in stocks is exciting, seductive even. After all, all you need to do is press buy and sell online and you could make yourself a fortune.
If you’ve lost money trading shares when a company has gone bust, you might feel a drop in the stomach on the news that an ETF is closing. It’s far from the same experience and a different process entirely. The most important thing to remember is that you don’t lose your investment when an ETF closes – it is about the closure of the vehicle.
Elon Musk predicts money will become irrelevant by 2036 as AI and robots produce more than humans can consume. Most analysts doubt it, but the investment implications hold whether he is right or wrong, particularly for Australian investors whose home market is light on the companies driving the shift.
Trading in an instant, a tap on a screen. One of the biggest appeals of using an ETF is the idea of its liquidity. But is your ETF as liquid as you think?
Central banks can’t buy gold fast enough, while gold miners are recovering after a dramatic selloff and Bitcoin, the asset previously regarded as digital gold, is having a miserable year.
Ask most investors what determines their long-term returns and they’ll most likely talk about their asset allocation, the way they select their fund managers or their track records at getting macro calls right.
When it comes to ETFs, a few stereotypes abound. Passive, low cost, flexible, broad exposure. While there’s some truth rooted in the stereotypes – some ETFs are index-trackers and have lower fees after all – investors should be wary of leaning too closely on these in their approach to ETFs.
Most market commentaries explain major price moves after the fact with tidy causes that sound obvious only in hindsight. In my opinion, that’s not an intellectually honest approach in the current environment.
Access to the investing world has exploded in the last few decades. Investors may once have required brokers to do their trading, or apply directly to fund managers to invest. These days, investors have a range of options, direct and indirect for their holdings.