Index Investing

colman1212

arrowloopboy wrote: »

Is Plus500 a spreadbetting platform ?

I didn't think so as it doesn't all the use of CFD's as far as I know. I am very knew to all this though so I could be wrong.

draiochtanois

This post has been deleted.

jank

FURET wrote: »

Let's say the MSCI index grows exactly 10% excluding dividends in 2015.

• VEUR would in theory grow 9.88% (because the TER is 0.12%)
• IMEA would in theory grow 9.67% (because the TER is 0.33%)

Some great posts FURET, outstanding information.
Just a question on the above.

The VEUR > IMEA because of the lower TER, however would IMEA not make up for this as instead of paying out dividends they reinvest it into the ETF, thus your ETF will increase in value? I suppose that is the trade off right?

Also, where can view the payout ratio of these ETF's?

colman1212

Jank, Off topic but what trading platform are you using here in Oz? I've been using etrade and have some stocks with them but it's painful when you want to trade in international markets, have to have orders in before a certain time and no live trading. Also can only use the value of your ASX shares as leverage when it comes to investing in an ETF. Any suggestions would be greatly appreciated.

jank

I use Commsec. They are OK, never had a problem with them although I don't trade with them (I am a buy and hold type of investor), they do do ETF's.
https://www.commsec.com.au/products/exchange-traded-funds.html

I am not sure though that you can buy some of the ETF mentioned here on that platform, they seem to cater for more Aussie focused ETF's.

International shares do have a premium though which is annoying.

jank

On another kinda unrelated point, how are people planning to play the oil drop. I would like to look for an ETF such as this be denominated in euro
http://www.ishares.com/us/products/239741/ishares-global-energy-etf

Prezatch

jank wrote: »

On another kinda unrelated point, how are people planning to play the oil drop. I would like to look for an ETF such as this be denominated in euro
http://www.ishares.com/us/products/239741/ishares-global-energy-etf

Here are a few denominated in EUR:

AMUNDI ETF MSCI World Energy UCITS ETF
Lyxor UCITS ETF S&P 500 Capped Energy
SPDR MSCI Europe Energy UCITS ETF
AMUNDI ETF MSCI Europe Energy UCITS ETF

jank

Cheers for the above. Is there any ETF that tracks the oil spot price but again denominated in euro?

FURET

jank wrote: »

The VEUR > IMEA because of the lower TER, however would IMEA not make up for this as instead of paying out dividends they reinvest it into the ETF, thus your ETF will increase in value? I suppose that is the trade off right?

Yes and no.

For example, for VEUR:

(Share price appreciation + Dividend payout) - TER would give 9.88% if the benchmark grew 10%

...For IMEA:
Share price appreciation minus TER would give 9.67% if the benchmark grew 10%

The advantage of IMEA would be *possibly* avoiding the triggering of a taxable event on the dividends AND saving the cost of reinvesting the dividends (though in reality you would simply add the dividends to your regular monthly contribution, so there should be no additional cost with reinvesting VEUR dividends manually).

For tax efficiency purposes I would probably go with IMEA if I were an Ireland resident. I buy VEUR personally but I don't live in Ireland so the taxation issue isn't a factor.

Also, where can view the payout ratio of these ETF's?

Check the relevant pages of the ETF on the provider's website and look for the dividend yield. For VEUR it is currently 3.3% https://www.vanguard.nl/portal/site/loadPDF?country=nl&docId=1015

Prezatch

jank wrote: »

Cheers for the above. Is there any ETF that tracks the oil spot price but again denominated in euro?

I'd imagine it would be tough to find a broker that had a selection large enough to incorporate what you're looking for. One below as an example:

http://www.bloomberg.com/quote/EBRT:IM