According to the World Bank, the average global life expectancy in 1970 was 71 – whereas by 2030 the expected global life expectancy will rise to 85. Due to population ageing, rising living standards and ongoing scientific advancements, spending on healthcare has increased strongly across the globe in recent decades and further strong growth is widely expected. As this note outlines, investors can easily gain diversified international exposure to this standout “secular growth” investment theme through exchange traded funds.
In this guest post, Jeremy Schwartz, Director of Research at WisdomTree, looks further into the relative attractiveness of European equities vs. U.S. equities. If you would like to hear more from Jeremy, he will be speaking live from New York as part of our educational webinar series, tomorrow at 12pm Sydney time – register now.
European markets trade at a discount to the U.S. Does that make them attractive despite the uncertainty that plagues the European economy and the political risk associated with Brexit, including the possibility of it spreading to other countries that might vote for anti-eurozone politicians?
The Australian exchange traded fund industry once again hit an all-time high for funds under management in September, building on positive growth recorded for the last few months. The industry ended the month at $24.1B, which included strong growth of approx. $530m for the month (2% growth). This month’s result was particularly strong when considering that the Australian sharemarket was flat and that global sharemarkets fell.
Editor’s note: One of the most common requests we get from investors is for content that provides practical examples of how to use our funds in their portfolios. In this guest contribution, Matthew Felsman, Private Wealth Adviser at APP Securities, discusses some ways that he has seen clients using exchange traded products first-hand.
Over the last 15 years Australia’s exchange traded market has grown to over $24 billion with 184 products now available on the Australian Securities Exchange. As one of the fastest growing investment products in recent years, a lot of content has been written on the benefits of using these products, as well as the risks associated. There is, however, less written for investors in terms of practical ways they can potentially profit from investing and trading these products. In this short note, I set out some ways that ordinary investors might look to generate profits using exchange traded products.
BetaShares is proud to have been awarded the 2016 ‘ETF Fund Manager of the Year’ at the Professional Planner | Zenith Fund Awards held on October 7th 2016.
With one of the largest dedicated ETF teams in Australia and one of the broadest Fund ranges, we remain committed to expanding the investment choices for Australian investors with intelligent investment solutions.
We are delighted with the recognition and thank you for your continued support.
Awards or ratings are only one factor to be taken into account when deciding whether to invest in a financial product.
Global equity markets inched cautiously ahead in September, somewhat heartened by the fact that the United States Federal Reserve baulked at raising interest rates at its key meeting. That said, growing fear of Fed tightening saw equity market “bond proxies” such as listed property underperform.
At yesterday’s meeting the RBA decided to keep official cash rates at the historic low of 1.50%p.a., and with the ‘little battler’ (our Australian dollar) still being resilient and trading between $0.75-$0.76 (vs. the USD), low cash rates look destined to continue for some time. As a result, the saver continues to be punished and the borrower rewarded, and for many self-funded retirees with their savings invested in term deposits, savings accounts or looking for the security of a capital stable or fixed income investment, this is not an ideal outcome.
As a result of the prevailing cash rates, investors are increasingly looking towards growth assets such as equities as a way to obtain more attractive levels of income. This is not ground breaking or a particularly new phenomenon, it’s been happening for a number of years now, however, with rates remaining low, the ‘flight to yield’ is only likely to increase. One aspect of investing in local equities, as most of you will be aware, is franking credits. Given we’ve just come out of the 30 June end of financial year period and many of us are eager to get those tax returns in to our accountants to see what we can get back from our friends at the ATO, I thought it was an ideal opportunity to briefly re-visit what franking is and why it is useful for investors who are holding Australian equities in their portfolios.
When it comes to exchange traded products (“ETPs”), the common perception among many investors is that they are cost-effective investments that can form part of one’s long-term core portfolio holdings. But given the widening range of funds now available on the ASX, investors should also appreciate ETPs are also handy trading tools in their own right for more active investors seeking to trade specific global investment themes or even specific events.
As a bright-eyed young teenager in the late 80s (revealing my age), one of the great movies of the time, Back to the Future II, revealed some pretty ‘crazy’ predictions on the technologies and products that would be available in the future – the future back then being the year 2015. One of the key dates in the movie was 21st October 2015 and when this date actually arrived plenty of stories popped up revealing many of the predictions in the movie in fact, had come true.
It’s been 12 months since we published a performance commentary post on our BetaShares Australian Dividend Harvester Fund (managed fund) (ASX Code: HVST). Given the popularity of that post, we’ve decided to do a refresh – we’ll also make sure we do it every year going forward.
This post may also be helpful for the large number of newer investors in the Fund, who may be eager to stay abreast of the Fund’s performance and how it’s been delivering on its objectives to date.