7 Jun 2018
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
ETFs or Exchange Traded Funds are marketable securities that track an index or a commodity or a bond or a basket of assets.
They are inexpensive and have been an extremely popular investment tool over the past 10 years.
The problem is that they are a synthetic, an engineered financial product that rarely holds any quantity of the underlying asset for which performance it tracks.
A question for you.
When the next financial catastrophe hits would you rather own the physical security such as the ordinary shares in a listed company or a mimic of that physical security?
This problem is well known and the fuel has been the insane focus on reducing investment cost at all cost which has expanded ETFs in the same way that hot air expands a balloon.
Click to read.
We are likely coming to the end game in the current cycle and so remember, when fear and panic take hold during this next financial catastrophe, investors will be presented with the opportunity to buy more quality assets at discounted prices.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.