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Vector Insights29 May 2020
Have you streamed the latest ETF?
Michael Brown, Director, Operations & Finance
The way we watch movies and television has changed. Technology from streaming services such as Netflix, Amazon Prime and Stan allow us to stream content on demand.
Likewise the way we invest has changed. ETFs allow for instant diversification to a range of asset classes via a single ASX trade. ETFs also use a process known as “streaming”. It’s an advantage ETFs have over unlisted funds and it’s one of the reasons why the use of ETFs in investor portfolios is becoming more prevalent. ETF streaming lowers investor’s tax.
Vector Insights15 May 2020
This cloud has a golden lining
by Russel Chesler, Director, Investments & Portfolio Strategy
Read This NowFor many years countries tied their currency to the amount of gold they physically held. This was called the gold standard. While gold is no longer used this way it continues to be among the most traded asset classes in the world. Recently the gold price has shot up.
The rise in the price of gold has been in response to the unprecedented intervention by central banks during the COVID-19 crisis and concerns over the impact of these interventions. While most asset classes have struggled in 2020, the shiny metal has been one of the few winners. One of the beneficiaries of a rising gold price is its miners. We believe that gold’s 2020 winning streak will continue, and its miners will flourish.
Vector Insights01 May 2020
ETFs have busted the myths
by Arian Neiron, Managing Director and Head of Asia Pacific
Read This NowOver the past few years some naysayers warned us that passive investing and ETFs (Exchange Traded Funds) were creating systemic risks which would be the cause of the next crisis or, if they were not the cause, they would exacerbate losses.
These pundits were wrong.
We predict that Australian investors will increase their adoption of passive investing and ETFs in the new world.
Vector Insights17 April 2020
Ahead of the recovery curve
by Arian Neiron, Managing Director and Head of Asia Pacific
Read This NowWe’ve become obsessed with watching the curve. Is it flattening? Is it spiking? We’re watching recovery rates with anticipation. For the day-to-day we need to look through short term statistical noise to identify longer term trends. The same is true when investing.
Vector Insights03 April 2020
Our aversion to losses
by Brad Livingstone-Foggo, Head of Marketing - Australia
Read This NowBehavioural economists and psychologists have tried to explain why stock market participation is low among households despite their historically higher average returns compared to other forms of investing. They have shown it’s because of our aversion to losses. The past few weeks has provided an example why people shun share markets but we think this will be overcome.