Partner Series

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Join ETF Securities as we partner with Australian and international investment professionals to discuss the latest market and economic issues and what this means for investments. You’ll find the latest videos and articles on this page or subscribe using the purple subscribe button on the top right hand side of the page to receive the weekly updates.

Latest articles

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Platinum is often excluded, ignored, or outright neglected. When investors think of precious metals their minds immediately run to gold and silver. Meaning that platinum, which is 30 times rarer than gold, receives less attention than it deserves. Platinum is enjoying a quiet renaissance, thanks to its role in building the hydrogen economy. Able to withstand unfathomably hot temperatures without melting or reacting, platinum is crucial for the hydrogen economy, which is set to grow in importance in coming years. How else is platinum used? Where does it come from? In this episode, I spoke with Trevor Raymond, head of research at the World Platinum Investment Council (WPIC), to learn more about this precious metal. Platinum Drivers & Suppliers Only a relatively small amount of platinum gets mined every year, Trevor notes. Almost all of it comes from a small region in South Africa. ...
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ETF liquidity – everyone wants it, and sure enough, the most common questions clients ask us at ETF Securities are about liquidity. Investors want assurance that ETFs will trade cheaply and smoothly. And know they always sell, even in volatile markets. In this episode, Kanish Chugh, Head of Distribution at ETF Securities, spoke with Robert Risk, Business Development Manager at Susquehanna. Susquehanna is a private-held securities trading firm – often referred to as a “market maker”, in finance jargon. Market makers work with ETF providers – like us at ETF Securities – and with stock exchanges – like Chi-X and the ASX – to ensure that ETFs trade smoothly throughout the trading day. Market makers like Susquehanna are a critical part of the ETF market. But they are often a background presence, known only to industry insiders. In this video, Robert lifts the lid on market making. He starts by walking us through the history of Susquehanna, which started out as an options trading company in Philadelphia in 1987. Who is Susquehanna? Today, Susquehanna trades over 2,000 ETFs in the US and in Europe, and around 200 in Australia. When investors log onto their CommSec or Nabtrade account and look at the prices for ETFs – what is called the “bid and offer spread” – Susquehanna will often be one of the companies providing the pricing and the liquidity. Often unbeknownst to investors, whenever they buy or sell an ETF on their brokerage accounts, they are often transacting with Susquehanna. How is Susquehanna able to trade so many ETFs at the same time all day long? Robert explains that it is Susquehanna’s investment in technology and people which allows it to calculate the fair value – called the net asset value, or “NAV”, in another piece of jargon – across the multiple ETFs that it trades. ...
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Blue chip shares – everyone wants to own them. But what are they? And do the world’s largest technology companies – Facebook, Amazon, Apple, Netflix and Google (the “FAANGs”) – count as blue chip? In this discussion, I spoke with Owen Raszkiewicz, founder of Rask, about what a blue chip company is, and whether the “FAANGs”—Facebook, Amazon, Apple, Netflix, Google—qualify. For Owen, blue chip companies have four attributes: maturity, brand strength, wide moats and dividends. This means that for him, FAANGs do not qualify as blue chips. This is because they are still growing very quickly and are, therefore, not mature. Additionally, many of them do not pay dividends. He adds, however, that what counts as blue chip is subjective. While not necessarily blue chips, Owen believes that the FAANGs may be “unstoppable” nonetheless, given their near-total control of global communication. The FAANG’s dominance today bears a resemblance to big oil 100 years ago—where market power begat greater profits for oil companies, which begat greater market power still. But with great market power comes the possibility of regulation, which has been a lurking threat for the FAANGs. Absent regulation, the only question left is valuations and what investors should be willing to pay for the FAANGs. For my part, I agree that the FAANGs seem unstoppable. For the same reason, I wonder whether the FAANGs can be valued the same way as more traditional blue chips. Even at $2 trillion market capitalization, Apple is growing very quickly making it different to local blue chips like Woolworths and Westpac. Potentially justifying a different PE ratio, among other things. ...