Why would I buy an ETF rather than a managed fund? What are the advantages of ETFs?
By Drew Corbett, Head of Investment Strategy and Distribution of BetaShares There are some major differences and advantages of ETFs over managed funds which investors should be aware of. The primary differences are summarised in the table below: #FOTO:1012:600# Expanding on these characteristics: Risk Diversification – ETFs usually provide all the diversification benefits of traditional…
18 Share Tips – 22 May 2011
#FOTO:1044:200# Cameron Bell, Intersuisse BUY RECOMMENDATIONS Woodside Petroleum (WPL) Chart: Share price over the year to 20/05/2011 versus ASX200 (XJO) Woodside is our favourite large cap investment opportunity in the oil and gas sector. The main attraction is the dominant LNG position Woodside holds in Australia as well as its strong project flow in…
Can I remove the initial cash or sell the shares and still have the margin loan sitting there?
Question: Can anyone answer my question regarding the initial cash or shares required as security for the establishment of a margin loan: Once the loan is established and becomes like a flexible line of credit, can I remove the initial cash or sell the initial share security and still have the margin loan sitting there?…
Why would I buy an ETF over a managed fund? What are the advantages of ETFs?
There are some major differences and advantages of ETFs over managed funds which investors should be aware of. The primary differences are summarised in the table below: Expanding on these characteristics: Risk Diversification – ETFs usually provide all the diversification benefits of traditional managed funds, providing an investor exposure to an entire index. The…
Modern Gold-Digging: From Prospecting to Prospectus
After gold’s stellar run over the past decade from $275 to $1,500 an ounce, many investors who were slow to get on board are kicking themselves over missing the boat. However despite the recent volatility and a raft of downgrades to forecasts for commodities prices, many analysts are still gold bulls. HSBC analyst Jim Steel…
18 Share Tips – 8th May 2011
James Georges, Patersons Securities BUY RECOMMENDATIONS Westpac Bank (WBC) Chart: Share price over the year to 06/05/2011 versus ASX200 (XJO) The bank just delivered an interim cash profit of $3.168 billion, up 7 per cent on a year ago. It lifted the interim dividend to 76 cents, 11 cents higher than last year. We retain…
18 Share Tips – 1st May 2011
Nicholas Brooks, RBS Morgans BUY RECOMMENDATIONS PanAust Limited (PNA) Chart: Share price over the year to 29/04/2011 versus ASX200 (XJO) Recent takeover activity has sparked investor interest in copper stocks for the short and long term. PNA is a top S&P/200 ASX stock with strong earnings and exciting short term catalysts in the next…
Randomness and the Stochastic Indicator
Trivia question: who said “If you visualise a rocket going up in the air – before it can turn down, it must slow down.’ I agree, it doesn’t sound extremely profound, mostly just common sense. However, the same person added: “Stochastic measures the momentum of price. Momentum always changes direction before price.” The author is…
Discounted Cash Flow Models – The Crown Jewel of Valuation or Black Magic Alchemy
Many sophisticated share market investors hail DCF (Discounted Cash Flow) Models as the one and only way to estimate the true intrinsic value of a company. For them, it is indeed the crown jewel of valuation techniques. Other investors, most notably technical analysts, scoff at DCF models as nothing more than complex smoke and mirrors,…
18 Share Tips – 10 April 2011
Sean Conlan, Macquarie Private Wealth BUY RECOMMENDATIONS Fortescue Metals Group (FMG) Chart: Share price over the year to 08/04/2011 versus ASX200 (XJO) Market fundamentals remain positive, with steel production and prices increasing and iron ore exports declining. We would see any weakness following a further iron ore price correction as a buying opportunity. We…
