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Serious about earning a yield? If retail investors are serious about earning a yield they can hope to live on, one logical option is to look to the ETF (exchange traded fund) market where a number of ETFs have been specifically set up to maximise the...
One of the great misunderstandings among retail and Self Managed Super investors is the belief that infrastructure stocks and property trusts are always good assets to hold if you are seeking a secure income stream. Sometimes, these stocks are even referred to as “bond proxies”, suggesting...
One of the biggest mistakes amateur investors make is to get more concerned with fees than with net returns. They are mesmerised by the prospect of saving money rather than growing their super pie. It’s true, as superannuation expert Jeremy Cooper memorably pointed out not long after...
iNAV. Funny sounding name, right? Well yes, but it is an important part of understanding what ETFs are all about. iNAV stands for ‘indicative net asset value’. What’s the Net Asset Value (NAV) you might ask? Well it’s total net assets under management of a portfolio. The NAV...
In short, lots. Just like there is with any investment that you may have. We all agree, ETFs are easy, accessible and offer you flexibility and liquidity, all for a low cost cost, but yes there are certainly risks. Keeping it simple, let’s look at some of...
A credit spread represents the additional risk (or risk premium) added on to a base interest rate (usually the rate of a government bond) when pricing corporate bonds. Credit spreads are closely related to a company’s estimated likelihood of default. A riskier company’s bond would have...
What are market makers? Market Makers are important part of ETFs and play a critical role in their underlying liquidity. As you are probably aware, ETFs are open ended funds, unlike listed companies which only have a certain number of shares on offer to trade. This means that...
Active ETFs are a relatively new investment type in Australia with the first one trading on the ASX in 2015. Since that time, they have exploded in popularity and for many people provide a more flexible and cost-effective alternative to your traditional managed fund. Do active...
1. Responsible Entity A Responsible Entity has the most important role in relation to our funds. All eInvest funds must have a Responsible Entity that holds an Australian Financial Services Licence and ensures compliance with all legal and regulatory requirements. It also oversees reporting, financial accounting...
What are Authorised Participants? Authorised Participants are an important part of managing ETFs and play a critical role in their underlying liquidity. As you are probably aware, shares can trade on the primary (e.g IPO) or secondary (e.g ASX) markets. Similar to shares, ETFs do as well....
