Is this another diversification trap?BY ROGER MONTGOMERY | VOLUME 14, ISSUE 1 In the wake of the global financial crisis (GFC), index ETFs were meant to offer risk-averse investors a safe and easy way to gain diversification. But nine years into the global ... Get articles like this delivered to your email - Sign up for the free weekly newsletter  More Articles |
Latest News
Advised clients more satisfied despite heightened costs: Report
A new report highlighting the value of financial advisers indicates clients are even more satisfied despite a higher cost of seeking advice.
First Guardian victims advance in case against InterPrac
The Federal Court has forced InterPrac Financial Planning to pay two victims of the First Guardian Master Fund that collectively lost a total $465,000.
Frontier Advisers brings Segal Macro, LCP partnership to close
Frontier Advisers, Segal Marco Advisers and Lane Clark and Peacock (LCP) have decided to bring their Global Investment Research Alliance (GIRA) to a close, after 13 years of partnership.
Mulino brings New Class of Advisers to life, guarantees fairer CSLR funding
Assistant treasurer Daniel Mulino will forge ahead with the New Class of Advisers (NCAs) as part of highly anticipated Delivering Better Financial Outcomes (DBFO) reforms and laid out a blueprint of how the Compensation Scheme of Last Resort (CSLR) will be fairer for financial advisers.
Further Reading
Cover Story
Advice with soul
SACHA BURCHGART
FOUNDER & MANAGING DIRECTOR
BURCHEART PTY LTD
FOUNDER & MANAGING DIRECTOR
BURCHEART PTY LTD
Though she initially tried, Sacha Burchgart couldn't escape the call of a career in financial advice; it just took staring down her own mortality to see what's possible when you do things differently. Jamie Williamson writes.
Expert Feed
The bond market's inflation blind spot
While markets have reacted to the latest escalation in the Middle East, longer-term inflation pricing continues to imply that these disruptions will be ...
Confidence to spend: why retirement planning is about more than investment performance
Many retirees face a critical challenge in retirement, and that is how to spend confidently not knowing how long their savings will last.
A never ending story of levies
The extensive processing period for Shield and First Guardian complaints means financial advisers will likely not be able to see an end to a series of ...
When 'diversification' stops being diversified
While many are worried about the dominance of US mega-cap companies, the same trend is also transpiring domestically, creating a concentration issue for ...
Quite a few years ago I read an article where an expert was suggesting ETFs could well be the spark of another GFC size correction, much like sub prime mortgages led to the GFC.
They used Gold ETFs as an example with the point being that a run on an ETF could see the fund selling at higher prices than the the physical value of Gold itself, resulting in a collapse of the ETF itself.
I remember after reading the article, of the wise advice cliche of "only invest in what you understand".
Since then, I've asked many so called experts what exactly is an ETF and, to date, I've only received answers that state what they are used for rather than what they are.
Reading your article creates an uneasy feeling that the weight of money invested in these vehicles is not normal nor sustainable. Reminds me of another cliche "You get what you pay for" & in the case of ETFs, for the majority of investors it's a case of "you don't know what - you get what you pay for"!