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"
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