Individual Investors

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. ...
India’s star is on the rise with many nations, including Australia, seeking to forge closer trade partnerships. Investors may wonder whether they should consider investing in India and the ways in which to include it in their portfolios. There are a range of options for investors to consider. Why consider India for your investments? Many investors are interested in emerging markets as a diversification strategy in their portfolio, with the Asian region typically attractive. The Asian region has a well-documented growth case in terms of a growing middle-class and economic prospects. Though China is typically front of mind, investors shouldn’t discount other countries, such as India, as valid options. Investors should be aware that India has continued to struggle with COVID-19, however, it is starting to show signs of recovery. India’s future is dominated by three key growth drivers: ...
Gold can seem like a mysterious asset, but data suggests it has a clear value in a portfolio. Setting the price Gold prices are set by the London Bullion Market Association (LBMA) which also incorporates specific global standards for gold sales and receipt. According to the World Gold Council, there are four broad sets of drivers to indicate gold’s performance1 which vary in their influence at different points in time. Economic expansion: gold is used in jewellery, technology and long-term savings. These are areas that experience a boost in times of economic growth. These are also periods where inflation and interest rates may rise, and gold is traditionally viewed as a hedge against inflation. ...
Thematic investing exposes your portfolio to some of the major socioeconomic, environmental and technological themes of our times in a tailored way. So what does this actually mean and how can you use thematic investing in your portfolio? Download the whitepaper, here. What is thematic investing? Thematic portfolios look at long-term macro trends, such as robotics and automation, and then use various screens and information sources to identify the companies or assets which support this trend through infrastructure or services. It can span several sectors or even asset classes, for example, a thematic investment in technology is likely to include companies within the technology sector as well as those in other sectors which access this trend, such as Amazon or Netflix. Investment themes should be: ...
Finder.com investments editor Kylie Purcell explains the differences between ETFs and LICs. Exchange traded funds (ETFs) and listed investment companies (LICs) are both popular investment options within Australia. Although they share a number of similarities, there are also important differences to consider as an investor. We’ll look at some of the main differences between the pair to help you decide which is best for your portfolio. What is an ETF? An ETF is a type of investment fund that trades on a stock exchange – similarly to regular shares. ETFs invest in a basket of assets, such as stocks, commodities and bonds. ...
5G is anticipated to transform the world, bringing new efficiencies and opportunities to how we live and work. For investors interested in incorporating this growth theme within their portfolios, the options are broader than simply telecommunications companies. What is 5G? Fifth generation wireless (5G) is a technology infrastructure system allowing communications and data access on-the-go, much in the same way that previous generations including the currently used 4G offered. It is anticipated to transform the ‘internet of things’ and become the force for the fourth industrial revolution. The fourth industrial revolution refers to how cyber physical systems are expected to drive the next era of industrial reform and change, bringing new efficiencies and opportunities to how we live and work1. Wireless networks are integrated into our lives and 5G sees that dependency increase further in the immediate future. It is already here in its early stages. ...
The COVID-19 crisis has shed a light on how fragile supply chains can be, with essentials from toilet paper to milk vanishing from shelves. The solution could be robotics, automation and AI according to a new paper from ROBO Global, the index provider behind ETFS ROBO Global Robotics and Automation ETF (ASX code: ROBO). Read the article The current pandemic has demonstrated how heavily existing supply chains rely on a human labour force. While many companies, such as Coles, already had plans to incorporate automation, it is likely that the current situation will accelerate this trend. There are five key areas where robotics, automation and AI are likely to transform supply chains. Automated warehouse solutions ...
Technology is not just transforming the way we work and live, it is also saving lives and changing how we treat diseases. The biotechnology industry may be appealing from a social and moral perspective, but it is also trending for future growth. Download the full article What is biotechnology? Biotechnology is a sub-industry of the healthcare sector and specifically refers to technologies that use biological processes, capturing companies that focus on research, development, manufacturing and/or marketing of products based on biological and genetic information. The different types of biotechnology include biological drugs, vaccines, immunotherapy, gene therapy, orphan drugs and genetic engineering. This industry has hit the headlines during the COVID-19 pandemic, with companies like Moderna and Gilead part of the race to find effective vaccines and treatments. ...
Renewable energy is a growing sector that is set to overtake fossil fuel energy in the future. Investors interested in this area should consider battery technology and storage, an area that is essential for the growth of renewables. A growing market: why battery technology? The value chain for battery technology ranges from mining companies, mining for metals like lithium, to manufacturers of battery storage and storage technology providers. All are potential beneficiaries of the anticipated growth in this industry. Lithium ion batteries have transformed the battery industry and accounts for 85% of commissioned, utility scale battery storage worldwide[1]. By 2022, utility scale battery energy storage capacity is expected to more than double, while the market for battery technology is anticipated to reach $90bn by 2025, growing more than 12%[2][3]. This growth is due to growing demand and increasing affordability of renewable energy like wind and solar power, along with the transition towards electric cars. Renewable energy in particular is an intermittent source and thus, dependent on reliable storage systems to ensure ongoing power. The Telsa-built Hornsdale Power Reserve in South Australia is a large-scale example of battery storage in play. How to invest in battery technology? ...
Whether your goal is to build a house deposit, pay for education or create a retirement income, taking a measured approach to your investments can help. Most investors typically need to be able to preserve a certain level of capital, while also investing for long term growth or income. An enhanced core-satellite approach to building your investment portfolio can help you target your goals and manage market movements. Download the complete paper or read a summary below. What is enhanced core-satellite investing? Enhanced core-satellite investing is a two-pronged approach to portfolio construction, where the core is made up of passive exposures to major asset classes (mainly equities and fixed income) and the satellite investments are more opportunistic and designed to seek specific growth outcomes, sometimes at higher levels of risk. Satellite investments could be targeted ETFs, actively managed funds or investments in individual companies or real estate. Generally, the core might be 65-85% of the portfolio, depending on the investor’s goals, investment horizon and risk tolerance, while satellites tend to represent 15-35%[1]. ...
Investing has become a game of chicken in the eyes of some investors. Has COVID-19 become a buying opportunity? Have we seen the bottom, or is the worst yet to come? It’s hard to make any solid predictions in this unfamiliar territory – investment markets have experienced a health crisis rather than being undone by poor fundamentals, such as in the global financial crisis. Those investors looking for ideas could consider the following. Download the complete paper or read the summary below 1. The essentials Some sectors are largely able to continue normal operations, even in crisis situations. Humans still need basic supplies and services to live, meaning that consumer staples continue to see demand, while infrastructure such as energy suppliers or telecommunications continue to need to operate. In the current situation, telecommunications have been particularly essential with much of the population needing to work from home. Investors could look at an ETF like ETFS Global Core Infrastructure ETF (ASX code: CORE) to access global infrastructure. 2. Defensive assets ...
From the current COVID-19 situation to the future, markets will always face periods of uncertainty and volatility. A measured approach to investment management can assist with supporting your investment portfolio in these periods. In this paper, we discuss four common approaches. Download now Market volatility refers to the magnitude of upward and downward movements in asset prices over a period of time. A company whose stock price moves up and down by 1% daily is considered less volatile than one with 5% daily moves. Investors tend to think of volatility in terms of downward market movements, as we are currently seeing, but it can equally relate to the pace of rising markets. Approaches to managing volatility 1. Diversification ...
To access the white paper, please click the download now button above. Investors considering growth in the portfolio may find megatrends offer an alternative and sustainable long-term approach. So, what are megatrends and how can you invest in them? Megatrends are universal socioeconomic, environmental or technological forces that change the way we do things . These trends tend to be sustained over longer periods, in some cases, 20 years or more and based on known patterns and pressures . Investing in megatrends has become increasingly accessible in recent times. A range of ETFs have appeared in the market to target specific trends and incorporate a wide range of companies in that area. Three examples of megatrends follow. 1. Virtual connectivity and digitisation ...
The Indian market disappointed investors in 2019, with three key drivers behind its performance. These included the non-banking financial companies (NBFC) crisis, the Indian election and India/Pakistan conflict. Despite this, the prospects for 2020 and beyond remain positive. Read the full article here. The drivers of performance Global markets were influenced by a range of events including the US/China trade war, slowing growth and recession fears in 2019. Alongside these concerns, the Indian economy was affected by a range of domestic issues, with three drivers of particular significance. 1. NBFC crisis ...
To access the 'No retirement for investments' white paper, please click the download now button above. Important notice: a previous version of this whitepaper incorrectly stated the ASFA comfortable retirement standards for a couple as $43,787/year and superannuation balance of $545,000. These figures relate to the comfortable retirement standards of a single not a couple. The standards for a couple are $61,786/year and $640,000 in superannuation balance. The duelling forces of retirement It is normal for retired investors to need to manage their portfolios for a stable income, a level of growth and capital protection, but current market conditions are making this particularly challenging. Faced with globally low interest rates on one hand as a threat to their income, and market volatility from geopolitics like corona virus and tensions in Iran affecting growth assets, how should retired investors manage their portfolios? ...
This is an extract of the ROBO Global paper 2020 Trends in robotics and AI innovation. To access the ROBO Global white paper, please click the download now button above. Companies around the globe are revising and rethinking their strategies to cement their futures in a world that is dictated by robotics, automation, and AI (RAAI). Deep learning, 5G, and computer vision are among the trends to watch in 2020 and beyond. ...
To access the ETF Trends 2020 whitepaper, click here. The ETF landscape has expanded rapidly from the straight index replication of the past to more tailored offers covering themes, specific industries or sectors and even using alternative weighting. Advances in technology has allowed ETFs to become more sophisticated to meet with investor needs and demands. The value of the Australian ETF market is currently $A60.24bn[1] and is anticipated to continue to grow both in size and available options. Here are five trends likely to continue in 2020. 1. The search for yield Continued globally low interest rates means investors are seeking alternative sources of yield. Some are still looking at fixed income, but focusing on international options like the US, which has higher interest rate compared to its counterparts. Others are considering using equity dividend streams to help provide an income. Investors concerned about volatility risks for an equity approach might look towards infrastructure ETFs. The infrastructure sector includes many essential services areas like utilities, telecoms, industrials and transport which tend to be less vulnerable to market cycles and movements. Investments in gold tend to be popular with investors in times of low yield and market volatility. Holding appeal for both consumption purposes and investment, the performance of gold tends to have low correlation with other asset classes and tends to offer stability in times of market volatility. ...
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