So it barely matters is what I got from that article? Plus it’s only one that is on pocket. The 3 largest ETFs all generated similar returns over the last 5 years with IOZ and STW both returning ~7% p.a. Discussion in 'Shares & Funds' started by PKFFW, 3rd Nov, 2018. This may enhance investor returns. This may generate returns that beat cash over the long-term, but I think Aussie investors can find much better shares for growing wealth on the ASX at the smaller end. My wife and I have finally gotten everything sorted and are now … He sits on two Advisory Committees for the industry regulator ASIC, and was previously a fund manager at UBS. Tristan’s goal is to help Australians learn about the great businesses listed on the ASX that will help grow their portfolio and wealth over the long term. Yes, those are the two I'm currently signed up to and getting familiar with, Total: 611 (members: 56, guests: 398, robots: 157), Copyright © Property Chat Pty Ltd ABN 11 606 247 134, (You must log in or sign up to reply here. ETF Please school me on Betashares A200 Vs Vanguard VAS. Since VAS is $86+ the $60 isnt enough so it would go nowhere and i'd have to wait until the second quarter to accumulate enough to purchase a share. This is important because of how much of the index the big banks are. Our latest articles and strategies for the post-work life you want. These ETFs have been undercut by BetaShares when they launched A200 at 0.07% p.a. A200 has around 240m in funds under management. BetaShares’ recently launched A200 has received a large take up over it’s first couple years. Sounds like brokerage would be a concern if the plan is to invest $15k per month. Current MER is not future MER. Yep. As of September 2020 there is almost $24 billion invested in ETFs tracking Australian shares, up 19% from the previous year. An ETF’s performance is completely dictated by the underlying holdings, with more of its weight allocated to the larger businesses in the index. Reddit gives you the best of the internet in one place. On average over the long term you'll have half the value of a share in limbo each quarter. Licensed Debt Recycling advice. Press question mark to learn the rest of the keyboard shortcuts. Looks like you're using new Reddit on an old browser. over six years in fees compared with 50k. Sign Up for Take Stock Page 1 of 2 1 2 Next > PKFFW Well … Tracking error is rarely zero because there are various factors that prevent an ETF from perfectly mirroring its index including fees. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now. This leads MVW to take weight out of the largest 10-15 shares and spread it across smaller companies. VAS has done a bit better given its broader exposure with a 5 year return of 7.3% p.a. [Official/LiVEStREAM]!! For example over the last 5 years VAS has generated 7.33% p.a. IOZ: $27.10 VAS: $84.27 STW: $61.63. We road test 5 popular Australian share ETFs, comparing them across 6 factors. The title cashes in on the popularity of Linklater's Boyhood, but … An interesting film - bought it for A Level students to watch. As … It would to have been good to compare them to an Equal weighted ETF for the ASX200/300.. such as the MVW. Join our flagship membership service, Share Advisor. Our clients are global and know we are property tax professionals. This sent a strong signal from BetaShares that it intends to compete with State Street, Vanguard and iShares in this category. Size is important because ETFs must reach a certain size to become viable. However in times of crisis investors may not be able to rely exclusively on market makers for liquidity so daily volume is a relevant figure. 453421) of Sanlam Private Wealth (AFS License No. ASX 200   |   A     B     C     D     E     F     G     H     I     J     L     M     N     O     P     Q     R     S     T     U     V     W     X. over the 5 years to 30 September 2020, outperforming MVW. Size is important because ETFs must reach a certain size to become viable. VAS and STW are the largest Australian share ETFs managing $5.7 and $3.5 billion respectively. He’s a keen tennis fan and can’t wait for the next Australian Open to roll around. Here’s why I’m not interested in investing in the Vanguard Australian Share ETF: Commonwealth Bank of Australia (ASX: CBA) is 7.5% of the index, Westpac Banking Corp (ASX: WBC) is 5.9% of the index, Australia and New Zealand Banking Group (ASX: ANZ) is 4.8% of the index and National Australia Bank Ltd (ASX: NAB) is 4.4% of the index. Rough and therefore inaccurate $15k per month for 72 months probably adds up to maybe 25k (?) This article contains general investment advice only (under AFSL 400691). The u/IOz---- community on Reddit. Same with me. It wouldn’t be so bad if the large index constituents were growing at a nice sustainable pace like Apple, Facebook, Alphabet (Google), Berkshire Hathaway and other American giants are, but they’re not. Join Australia's most dynamic and respected property investment community Sign up now! I also go with iem over vae and ioo over something like vgs, New comments cannot be posted and votes cannot be cast. in returns compared to the benchmark (S&P ASX/300) which has delivered 7.42% p.a. Australia has a small population, therefore the big companies have now reached a growth ceiling that relies on population growth and/or inflation. For those looking for exposure to the broad Australian market, there’s 3 funds which dominate this space, these being iShares S&P/ASX 200 ETF (IOZ), SPDR S&P/ASX 200 Fund (STW) and Vanguard Australian Shares Index (VAS). 12 Stocks To Buy in 2020 (Including 2 Every Investor Should Own), Everything You Need to Know About Tech Investing, The Beginner’s Guide to Investing in Gold. Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. you are thinking if should I take Android, I could miss IOS at every place, so don't wanna take Android before trying IOS then exchange easy, it depends on you, Normally, therefore, peoples get the information about this difference. And even index Mgrs can add value that may see them outperforming the index they follow or at least compensate for part of the fee. We road test 12 popular Global share ETFs, comparing them across 5 factors. Press J to jump to the feed. Joined: 15th Mar, 2018 Posts: 315 Location: NSW. Investment news, stock ideas, and more, straight to your inbox. VAS has historically had the highest liquidity, but as of September 2020 was secondary to IOZ who traded over with over $46 million per day. As a final note it’s great to see the original Australian share ETF (STW) as well as global ETF giants (VAS and IOZ), different index strategies (MVW) and local disruptors (A200) all have broad Australian share ETFs available. SecurityWatch: Android vs. iOS, Which Is More Secure? Comment deleted by user 3 years ago More than 1 child. Privacy Policy | IOZ's unit price ~$27 when compared to VAS $84 allowing for DRP to purcahse shares at lower funds. We continue to favour VAS for a few reasons: VAS’ low expense ratio (0.10% p.a.) Subscription Terms of Service, ACN: 146 988 052 | Australian Financial Services Licence (AFSL): 400691, The Motley Fool Australia, PO Box 4635, Ashmore, Qld 4214. So, long run I don’t think there will be much in it. Join Our Premium Community Past performance is not necessarily indicative of future returns. The international-focused Vanguard ETFs are very good investment options and most regular investors would do well over the long-term by just picking and holding these. However, I’m looking to produce returns that beat the market over the long-term, which is why I’m avoiding the Vanguard Australian Share ETF. Get your free personalised portfolio recommendation, Receive the free Stockspot monthly newsletter and updates. Discussion in 'Shares & Funds' started by PKFFW, 3rd Nov, 2018. Former Apple intern Christian Selig says he wasn't happy with the selection of iOS apps for browsing Reddit, so he decided to build his own. Get Started Investing Company Overview. You might as well ditch the DRP and just reinvest manually until your investment grows to a decent size. I understand there is little difference between the 3. Discussion in 'Shares & Funds' started by PKFFW, 3rd Nov, 2018. The site may not work properly if you don't, If you do not update your browser, we suggest you visit, Press J to jump to the feed. The VSO fund charges 0.30% p.a. Page 1 of 2 1 2 Next > PKFFW Well-Known Member. Also ioz is able to be bought from CommSec pocket. When investing expert Scott Phillips has a stock tip, it can pay to listen. The Royal Commission and the flow-on effects could hurt not only the FY18 result, but the FY19 one too and perhaps beyond. What we originally liked about this fund was its low costs (0.10% p.a.) Each year we compare all 200+ ETFs in our Australian ETF Report. This doesn't mean I'd spend a lot of time worrying about it. Low costs, diversification and easy access – what’s not to like? Is this correct? Rolf Latham & Alex Straker from ASAP Financial Services can show you how to simultaneously pay off your home loan and create wealth immediately. IOZ and VAS are both up there. New comments cannot be posted and votes cannot be cast. It has more of an impact if you’re trading an ETF or making regular contributions because you’ll need to cross the spread more often to get invested. It’s worth mentioning that it may not reflect liquidity in the underlying stocks which is typically much deeper for broad Australian share ETFs. Plus it’s only one that is on pocket. Android vs iOS – Difference and Comparison (updated for Android Nougat and iOS 10) November 10, 2017 by mujeer Android VS iOS which one is better for you? Take the absolute worse/best case scenario: IOZ perfectly syncs their distribution with their price while VAS holds $85.99 every single quarter (e.g. Where STW, VAS, IOZ and A200 are market-size weighted indices, MVW is an equal-weight index. Since 2014 we’ve invested on behalf of our clients into the Vanguard Australian Shares Index ETF (VAS). By comparison the average Australian Equity managed fund offered on the ASX mFunds platform charges a bid/ask spread of 0.55% which is more than 18x more than VAS! Brokerage would the the same for either. In 2015 STW lowered its MER from 0.29% to 0.19% in response to competitive pressures from VAS and IOZ which were gaining market share with fees of 0.10% and 0.09% respectively. Slippage refers to how much you lose by crossing the spread when buying or selling an ETF. The performance of these smaller shares relative to the largest companies is a key driver of differences between MVW and market-size based ETFs. A200 recently listed so doesn’t have 5 years of performance yet. Stockspot Pty Ltd ABN 163 214 319 is a Corporate Authorised Representative (No. For example image the quarterly yield is 1% then that would result in $60 distribution. I suppose the aggregate fees add up over the six years. Yes. of each other on fees. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF.