Ada wat... all etf got divvy 1... but it does not matter, left right pocket only.

China 25 etf tracks the 25 biggest stock in HKSE/CHina. If MY index crash, the ETF should hold steady, but if HKSE crash, the ETF will crash together.

ETF can sometimes trade at below or above NAV, this is called discount or premium, usually will happen during volatile times (human emotion hard to control), but still the difference will be small max up to 5% (usually 1-2%). And this difference will correct itself in a short time. The more the liquid ETF is the smaller premium/discount (for example big ETF like S&P 500 trades at premium/discount of 0.1%-0.2%). ETF with totally no liquidity is also somewhat protected as the market maker's queue is enough to adsorb.

How this happens is when there is too much buyers or sellers transacting than the market maker can adsorb.

Lets say NAV RM 1

Market maker every morning will queue. The queue is once per day and once the queue filled, the bank will not add more queue for the day.

100 lots buy at 0.99 100 lots sell at 1.01
100 lots buy at 0.98 100 lots sell at 1.02
100 lots buy at 0.97 100 lots sell at 1.03
100 lots buy at 0.96 100 lots sell at 1.04
100 lots buy at 0.95 100 lots sell at 1.05

Lets say suddenly a panic big investor decide to dump 300 lots at buyers price, the bank will adsorb the volume until 0.97. You can view this as an opportunity to queue at 0.97 when the next person decide to throw, thus buying at 3% below NAV (Discount). The reverse is also true (premium).

Hope you understand more about ETF.

This post has been edited by gark: Sep 14 2013, 09:54 AM

The advantage (or disadvantage?) of ETF is that it does not attempt to outdo the index, it will simple follow the index. While some people view this as a negative aspect, remember MOST of the UT fail to keep up with the index. IMHO Most malaysian based UT failed miserably when they venture out of Malaysia ( example public funds).

The other advantage is cost, cheaper sales charge, cheaper management fee.

One more advantage is there are >3000 ETFs with at least 1 etf for every single country or investment type in the world. There are short ETFs which short sell the index, which the index fall you earn money. There are also leverage ETF which increase the leverage 2-3x (based on swaps) for an index, so if the index goes up, they will earn 2-3x as much.

ETF enable you to invest much more vastly.. and access to investments that you are not normally possible to do (short selling/swaps etc)

This post has been edited by gark: Sep 14 2013, 10:02 AM

Ya.. you are correct. That's is why my ETF purchase is S&P500, World ex USA and some GEM & commodity. For Asia ex. Jpn I hold mostly UT.

This post has been edited by gark: Sep 14 2013, 10:22 AM

Nope.. bolehland i don't buy UT or ETF.. i buy direct stocks.

Larry Summers withdrew his nomination to be next fed chairman, so Bernanke might be sticking around longer than expected. Suddenly now tapering is now a non issue, hence bonds everywhere is rallying today.

Market always hit's you where it is least expected...

This post has been edited by gark: Sep 16 2013, 11:59 AM

Huh..? What you invest? I already exceeded my previous high before the crash...

Did you average down during the dip?

This post has been edited by gark: Sep 17 2013, 08:07 PM

Don't lump sum.. buy gradually...

FSM has been greedy these last few years...

First Platform fees on FSM SG

Then Platform fees on FSM HK

Then minimum charge on $10 for FSM SG

Now for FSM Malaysia?

The trend does not sound good.

I am moving out my FSM SG to Dollardex...

This post has been edited by gark: Sep 20 2013, 10:32 AM

In SG it is 0.5% sales charge but $10 min, to get the sales charge rate you need to buy $2k worth each time to justify the charges.

No platform fee, no min charge, bonds 0%, equities 2%

Cause they never promo at all. Fees are straight to the point...

You can choose either pay 2% and no fee & no advisory OR pay 0% for everything and pay for advisory (platform fee)


This post has been edited by gark: Sep 20 2013, 01:08 PM

If individual stock even higher...

Investment need to be pretty one meh? I rather pay lower for less 'nice'.

Can use enough lor...

Psst.. there is even 1 more distributor even less nice but even cheaper...www.eunittrust.com.sg

But the website is confusing... but 0% (including some equity funds) & max 1% for ALL funds, no ongoing fees... no high/low level investor, all pay the same price.

This post has been edited by gark: Sep 20 2013, 02:34 PM

Never check before buy 1 meh?

Mana drillzzzzz?

This post has been edited by gark: Sep 20 2013, 05:11 PM

Nice quote, but the quote is NOT meant for bonds, its means for value investing.

0.2% p.a. fee.... as previously state FSM is getting greedy...

Ya platform fee not suitable for long term investor.. only suitable for hit and run investor.. ie those buy sell buy sell... type

In fact the pay back time is shorter because fund value will go up hence you pay more in % as the fees compound...

This post has been edited by gark: Sep 20 2013, 06:27 PM

If you buy back the same thing or other bond fund.. what is the difference? The ticker continue to count...

Unless you take out and invest in KLSE then you 'save' some fees lah

This post has been edited by gark: Sep 20 2013, 06:32 PM