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I've attached a comparison graph to illustrate my last post

 

This is the performance over the past month following the dismal performance of the JSE. As expected, the pure DIV fund dropped least, followed by STXQUA, which is a hybrid, and the Top40 performed the worst.

 

This is typical of dividend fund behaviour, and it's important to have in flat and bear markets, but the obvious downside it that lags in bull markets. I feel it's important in a diversified portfolio though.

 

So GLODIV is basically the global version of the local STXDIV.

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Anyone else having issues trying to reserve this through EE TFSA? Tried friday and today, click email - takes me to my account, enter amount, click apply, and, and, and, nothing...?

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Ashburton World Government Bond ETF

 

The Ashburton World Government Bond ETF provides investors with cost-efficient exposure to the global bond market by tracking the Citi World Government Bond Index (WGBI). You need to participate in the Ashburton World Government Bond Exchange ETF IPO before 00h00 on Sunday 04 March 2018.


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Stanlib is offering three separate IPO's:

 

Stanlib MSCI World Index Feeder ETF

This ETF aims to track the MSCI World Index in South African Rands, it invests in the iShares Core MSCI World UCITS ETF.

 

Stanlib Global REIT Index Feeder ETF 

The ETF aims to track the FTSE EPRA/NAREIT Global REIT Index in South African Rands, it invests in the iShares Global REIT ETF.

 

Stanlib Global Government Bond Index Feeder ETF

The ETF aims is to track the FTSE Group-of-7 (G7) Index in South African Rands, it invests in the iShares Global Govt Bond UCITS ETF.

 

You would need to participate in any of the Stanlib IPOs before 00h00 on Monday 5 March 2018.


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The Investec one is worth a look I reckon, the rest just duplicates of already existing funds so fees are the only thing separating them.


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The Investec one is worth a look I reckon, the rest just duplicates of already existing funds so fees are the only thing separating them.

 

I feel the ETF space in SA is getting crowded now - soon we will have what we have in the US. I much prefer we have a couple smart beta products (like 10) and then the companies focus on lowering the fees.

 

We have 64 ETFs on the JSE currently, it's too much.


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I feel the ETF space in SA is getting crowded now - soon we will have what we have in the US. I much prefer we have a couple smart beta products (like 10) and then the companies focus on lowering the fees.

 

We have 64 ETFs on the JSE currently, it's too much.

 

The benefit is that you can use a specific provider's platform (CoreShares, Sygnia etc) and have all the portfolio building blocks there (ETFs). MUCH lower fees.


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Absa is listing two NewFunds ETFs on the JSE: The NewFunds Low Volatility Equity ETF, which is made up of stocks that are considered to be more stable over time, and the NewFunds Value Equity ETF, which is made up of stocks that are considered 'cheap' or undervalued.

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Finally. They initially said the value ETF will be listed mid 2017. Better late than never.


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Oooh, the value one looks attractive! :-)

 

How does it work though - if it's made up of undervalued shares, as soon a component share recovers to a calculated "fair" value (for want of a better word), then it gets kicked off the ETF?

 

And how is "fair value" decided? Especially since 28% of the ETF is commodity shares, which are cyclic?

 

It sounds really good, but I'm struggling to get around the technicalities.

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Oooh, the value one looks attractive!   :-)

 

How does it work though - if it's made up of undervalued shares, as soon a component share recovers to a calculated "fair" value (for want of a better word), then it gets kicked off the ETF?

 

And how is "fair value" decided? Especially since 28% of the ETF is commodity shares, which are cyclic?

 

It sounds really good, but I'm struggling to get around the technicalities.

 

Google "factor investing"

 

This is the first "value" ETF we have as far as I'm aware, but we've had low volatility and momentum for quite some time and of course recently we've gotten a quality ETF.


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Here is the link to the factsheets of each ETF

 

NewFunds Low Volatility: ABSANewFunds_Low_Volatility ETF_InfoSheet.pdf

 

NewFunds Value ETF: ABSANewFundsValue_InfoSheet.pdf

 

PS: The layout of those sheets look bloody nice actually compared to the other ETFs I've seen.


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Well, that's an "underwhelming" fact sheet for NFEVAL.

 

Interesting though, it rebalances twice a year instead of the regular four times a year but still comes at a cost of 0.5%. For what? NFEMOM is expensive because it rebalances every month but this...why is it not closer to the 0.2-0.3 of their other ETFs like NFSWIX?


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Well, that's an "underwhelming" fact sheet for NFEVAL.

 

Interesting though, it rebalances twice a year instead of the regular four times a year but still comes at a cost of 0.5%. For what? NFEMOM is expensive because it rebalances every month but this...why is it not closer to the 0.2-0.3 of their other ETFs like NFSWIX?

 

To me it makes sense that it re-balances only twice a year. The ETF is made up of "undervalued" shares weighted by how much they are undervalued. As they start growing and becoming less undervalued, the weighting becomes less. As soon as they reach "fair" value, they no longer qualify to be in the ETF and get kicked off. At least in an extended growth run, the six months will give the ETF the benefit of reaping the growth of that share, ratrher than kicking it off immediately as it reaches "fair value", as would be the case with frequent re-balancing.

 

My problem with this methodology is that the biggest weighting is given to the most undervalued shares which have become that way by a continued down or flat trend, which is bad. As soon as it starts growing (which is desirable), it becomes less and less undervalued, so it becomes weighted less and less as it grows more. This penalizes shares that are performing.

 

Maybe I am understanding the methodology incorrectly, but this is what I understand from what I have read. I wish we had an expert around that could clear things up regarding the methodology.

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@SaurusDNA, it's not the rebalancing interval, it's the cost. 0.5% TER is high for an ETF like this IMO. Just wondering where the costs are coming from considering it trades less than their other ETFs on the same exchange but at double the cost.


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@SaurusDNA, it's not the rebalancing interval, it's the cost. 0.5% TER is high for an ETF like this IMO. Just wondering where the costs are coming from considering it trades less than their other ETFs on the same exchange but at double the cost.

 

You're right - it is high. It's the same TER as the low volatility, which re-balances quarterly, so it doesn't make sense, although in the video, they say the TER will be reassessed and adjusted after a year once the actual costs are known.

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Satrix Nasdaq 100 ETF launching - The anticipated date for listing on the JSE is Tuesday 10 April 2018

 

Satrix Nasdaq 100 ETF

 

The Satrix Nasdaq 100 ETF aims to replicate the performance of the Nasdaq-100® index and enables you to invest in the 100 largest, non-financial companies listed on the Nasdaq Stock Market in a single trade. It will be listed on the JSE which means you can invest in South African Rand and are therefore not subject to any exchange control approvals. As this is a total return ETF, the income from the underlying securities is automatically reinvested and no distributions will be made. The Total Expense Ratio (TER) will be targeted at 0.48% p.a. and will be calculated after 1 year.

 

Fact sheet - Click Here


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