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ETF Investing Ideas & News
Investing in High Dividend ETFs
Market News -
Funds that focus on dividend yield may look appealing to those seeking a consistent, stable source of income. Done well, they can deliver on this objective, but a shoddy process can expose investors to large amounts of risk, and lead to poor long-term outcomes. Comparing a good high-yield-oriented dividend fund to one with less-favourable characteristics should help illustrate some of the nuances that can make or break these strategies. The Traits...
Baillie Gifford: ETFs are for Suckers
Market News -
Investors using exchange traded funds and index trackers are “the next bunch of suckers”, says one fund manager. Charles Plowden, manager of the £1.6 billion Monks Investment Trust (MNKS) has likened the rise of passive investments to the opaque mortgage products which contributed to the financial crisis. The veteran manager, who has worked at Baillie Gifford since 1983, says passives are “non-thinking money” and investors “have forgotten their role in the economic chain...
3 Gold Rated ETFs for Your Portfolio
Market News -
In 2016 alone, around 200 new ETFs of all shapes and sizes were launched for UK investors – so it is understandable if you find the choice a little overwhelming. With so many competing products it is becoming more difficult to select the right funds for your portfolio. To help, Morningstar has recently launched analyst ratings for ETFs. This qualitative and forward looking rating harnesses the same "five pillars" methodology used to evaluate traditional actively managed...
Which Passive Funds Charge Unnecessarily High Fees?
Market News -
In this world of increased automation and commoditisation, passive funds are expected to be ultra-cheap. So much so that there are those who argue it is only a matter of time before the funds tracking mainstream indices such as the FTSE 100 and S&P 500 are given out for free. This may sound like an exaggerated claim, but in the United States one can already buy the whole U.S. stock market...
3 Top Rated ETFs for Japanese Equities
Market News -
Japan has more to gain or lose from changes to US economic and foreign policy under a Trump presidency than most. As its largest trading partner, the US accounts for around one-fifth of all Japanese exports. As such, the fortunes of the Japanese equity markets, which are packed with exporters like Sony and Toyota, will be closely linked to the decisions made within the incoming Trump administration. Despite the country being the subject of...
Are Synthetic ETFs a Dying Breed?
Market News -
Not that long ago it was hard to talk about ETFs and not get embroiled in heated discussions about the merits – or otherwise – of physical and synthetic replication. The debate was actively encouraged by ETF providers themselves. They soon realised that their infighting was detrimental for an industry in its early stages of growth, and agreed a truce. For the past few years, public confrontations about replication methodology have been largely avoided. However, the debate...
Do Active Funds Have a Future?
Market News -
Two years ago, I wrote a column that began: "Do active funds have a future? To cut to the chase: apparently not much." When I said that, index funds were enjoying record-breaking sales and active funds were in net redemptions. But those numbers alone were insufficient evidence to conclude that active funds faced real trouble. Just as past fund performance proves to be an unreliable guide for the next few years' returns, so too...
Investor Views: “Active Funds Are Not Worth the Cost”
Market News -
Business owner Malcolm Craven is switching his investment strategy, to focus on greener and more ethical options. “I am mainly investing for retirement. But I’d also like to be building some funds to help pay my daughters’ university fees,” he adds. “But they are both teenagers now, so I’m aware I may have left this too late.” Over the last decade, most of his pension and ISA savings have been passive tracker funds...
