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Why ETF's and their providers drive me crazy

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Regular Contributor

What is it about the investing public that encourages promoters of ETF's to simply introduce new variations of these - usually in response to what are seen to be "market trends" - and invariably at the worst of times for investors - this together with the difficulty of being able to ascertain at a glance what these funds NET OF EXPENSES have delivered for you.

It drives me crazy when all I see are people standing  up to trumpet on DSTV "we are launching fund X , which fills the gap between ...whatever and what else ...."

Cmon! A fund composition or combination thereof is not "an investment solution" per se - unless it represents a solution -as in actually adds value in building a portfolio. What these good people do is to scan the market and say ( not to loudly) "Ok What part of the market does not have an ETF covering it or what  is moving " = our opportunity... QED   

Why do these sales driven people do this - I have just given the answer - because they get paid to "COLLECT" AUM !

Of course they have a place - mostly in my mind where one is portfolio rounding to include exposures to markets that move like the US - but price wise and transparency wise they are just about if not more opaque than the active managers. And don't give me this rubbish about "on average half the active managers UNDER PERFORM THE MARKET".

Like who doesn't know that? This not revelationary this info?  And who just assumes that their pricing is "worth it" - the OVERALL cost is not a freebie - in fact some of these guys

are very expensive.

Its not rocket science to seek out and find the above average managers - and if i am investing for the longer term - 5 years they will offer above average returns - as in market beating returns

AFTER EXPENSES.    

Every bit of performance counts - i know that while I hold an etf - I will underperform the market. ( PS I do hold them - but they really need to up them game on the communication front.)DO HOLD THEM i DO HOLD

So lelLIKE hEY oF COURSE aaua think the average investor is an "ejit"

Any idtion  iWhat  allowing all"    t ahit acutally   nature of what they eh impenetrable  around a bsic thcontinually think  s'admiiproviders oc

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wdoost1
New Contributor

Hi Partridge1, rather off topic but I feel that despite the excellent topics shared by Dineo and the regular commentators, the informal old sharetalk format was way more popular with the fellow investors / traders. This is reflected in the paltry use of comments / blogs in the new Community format. Please will SBOnline consider reverting to the old format wherein sharing of views was something to behold. Regards, Willem / Bluenote

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Regular Contributor

Just when I thought I was talking to myself - which I do regularly. I tend to agree its all gone a bit "quiet" out there... And that the more surprising because there is plenty to talk about?

Is the silence just bcause most people are in shock because SA inc is in such trouble - and probably going to reflect even greater market declines when the election does not become a light switch for stock market upward movement?

Its not like the World as a whole is filled with confidence- Europe in a mess the Chinese and the US at each others throats and then of course the shambles that is Brexit?

There is not much trust left out there in the bank of human expectations - too many groups letting the show down - whether it be the clash of shareholder interests the betrayal of public service values - here - and

the political discontectedness seen in Europe = where the tribes are lining up.

Oh and by the way I agree with you -certainly when it comes to levels of participation - there is more activity in a cemetry than on this site!    

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wdoost1
New Contributor
Thank you Partridge1! for your views- these are treasured by me...Do you Know to escalate this Matter to the community? I sent it to you because I value your opinions!
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