Individual Investors

Quick facts The FAANGs provided one-third of the Nasdaq’s returns last financial year The FANG+ index, which tracks these stocks and others, strongly outperformed the Nasdaq The success of major indexes turned partly on how many FAANGs they had The Nasdaq 100 powered to all-time highs last year, driven by the famous “FAANG” stocks. ...
A question many ETF investors have is whether to participate in a Distribution Reinvestment Plan (DRP). ⇒ What is a DRP and what do you need to do? ETFs like many other investment options pay distributions. But why? Well, if the underlying companies that an ETF holds pay dividends, these are paid directly into the fund. The ETF collates all forms of income within the fund, including dividends, interest, capital gains and other amounts, and pays this out to investors as part of a regular distribution. ...
View Part 1 | Investment Strategy Part 2 | Risks and weaknesses Exchange traded funds have earned a justified reputation as being among the safest types of funds. However, ETFs are not perfect. There are risks and weaknesses that investors should know. Some ETFs lend out their shares to short-sellers Some ETFs lend out the shares that they hold to short sellers. Short-sellers borrow shares and sell them, with a view to buying them back later (at a lower price) and returning them to the borrower. Short sellers pay rental fees for what they have borrowed to the ETF issuer. ...
Europe fell out of favour with investors for several years. The Eurozone debt crisis, Brexit, the rise of populism—the crises seemed to pile up. Meanwhile, America went from strength to strength boosted by FANG internet giants (Facebook, Amazon, Netflix, Google). This year, investors are warming to Europe once more. Thanks to global economies reopening from the coronavirus, and to new fears that share prices of American businesses have overheated, Europe is seeing great interest again. The companies listed are all found in the ETFS EURO STOXX 50 ETF (ASX Code: ESTX). Five stocks that are well-positioned ...
Part 1 | Investment Strategy Investors buy ETFs because they like their investment strategies. They give them access to things they want to own and help them achieve their financial goals, but there are stark differences between ETFs’ investment strategies. Below is a guide. What assets does the ETF buy? ETFs can own many different assets: global shares, Australian shares, bonds, precious metals—and more. Some ETFs can even own multiple types of assets—what are called “multi-asset ETFs”. Knowing what assets an ETF holds is therefore crucial, as it can help determine whether the fund is suited to your goals and risk tolerance. ...
Technology has been the best performing sector for the past 10 years1. This outperformance is attributable to superior fundamentals. In the past decade, tech has had the best earnings growth and profit margins2,3. This has naturally translated into higher stock prices. The coronavirus has been the cherry on top. Thanks to social distancing, more people are working from home, shopping online and using online entertainment. This has brought forward years of technological adoption. But which companies may stand to benefit? Below we look at some of the bright lights. The companies listed are all found in the ETFS Morningstar Global Technology ETF (ASX Code: TECH). Five companies fuelling the transition ...
Companies have been adopting robotics and automation into their businesses for many decades now. Robots, which are essentially programmable machines, offer businesses greater productivity. Machines, unlike humans, can work endlessly—days, nights, weekends and holidays. They are also better suited to repetitive and mundane tasks, which humans can find boring. But robots also offer answers to demographic questions. Thanks to the global aging population, labour shortfalls are on the horizon. Countries such as Japan – where the robotics industry is among the most developed in the world – are already leaning on robotics and automation to plug the gap. The companies listed below are all found in the ETFS ROBO Global Robotics and Automation ETF (ASX Code: ROBO). Five companies fuelling the transition ...
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