ETF portfolio: finding value in the world’s cheapest stockmarkets

Value is one of the few consistent predictors of investment returns, and when it comes to attempting to profit from value investing, there are plenty of ways to skin the proverbial cat.

Our new global value portfolio seeks to profit from the eight most undervalued single-country markets in the world, out of the 40 that are investable and accessible using ETFs.

Value investing: how to become a bargain-hunter investor

The next ‘hidden liquidity problem’ that could erupt

The gating of Neil Woodford’s flagship Equity Income fund in early June has alarmed investors. However, Woodford invested the fund in small and unquoted stocks that are difficult to sell quickly, listing some stakes in unquoted companies in Guernsey simply to circumvent the regulator’s rule that caps at 10% of net asset value (NAV) the proportion of unlisted securities an open-ended fund with daily dealing can hold.

ETF analysis: how passive investors can buy China

Despite some recent signs of slowing down amid the ongoing trade war with the US, China remains among the fastest-growing emerging markets. The economy has been posting high single-digit GDP growth over the past two decades thanks to rising domestic consumption and infrastructure investment.

China has become a mainstream investment in many portfolios, and this is only likely to increase in coming years. Exchange traded funds (ETFs) offer investors easy access to the Chinese growth story, but navigating the country’s equity market is not straightforward.

Five ways to protect your investments against Brexit currency swings

When you invest in – for example – an S&P 500 ETF, you are tracking the movements of the US large-cap equity market, but you are also left at the mercy of the USD/GBP exchange rate.

This is not a trivial point. Since the Brexit vote in 2016, the pound has dropped 15% against the US dollar, boosting already strong US equity returns to UK-based investors.

ETF demand: Americans are the hares to Europe’s tortoises

Investor interest in passive investment continues to grow at a healthy clip across the globe, and investors in ETFs are leading the charge into passive funds. This is particularly the case in the US, where ETFs have become akin to a default investment option.

In the UK and mainland Europe, the trend is also positive. Flows into ETFs in the first four months of 2019 totalled €30 billion (£26.5 billion). The value of assets invested in ETFs in Europe is nearing €800 billion (£710 billion), up from €200 billion (£175 billion) at the beginning of the decade.

How ethical ETFs offers investors shelter from volatility

Sustainable investing is not just about buying ‘green’ and avoiding ‘sinful’ stocks; it’s also about recognising that sustainability issues can influence a company’s performance. It makes sense to consider environmental, social and governance (ESG) factors when investing, particularly if you have a long-term perspective.

ETF ideas to profit from fast-growing economies

Against the backdrop of lofty valuations for many developed equity markets – the US in particular – the investment proposition of emerging markets has been gaining traction recently. Whether as a satellite holding to increase geographical diversification or as a core element driving an investment portfolio’s growth, the rationale for investing in emerging markets remains solid: to benefit from these countries’ higher economic growth potential.

Buying a passive fund does not mean taking a passive approach

There is no hiding it, really – putting together a portfolio that is right for you is complicated, even if you use tracker funds or exchange traded funds, which are often misleadingly called ‘passive’ investments.

It takes considerable work and research to find an investment portfolio you are happy with and that meets your needs. It can help a lot if you speak to a financial planner, but even then, some preparation is recommended.

Why investors should not fixate on falling passive fund fees

Academic finance is now dominated by the ‘efficient market’ hypothesis. Try as they might, the theory goes, active fund managers almost never outperform the market over the long term. Investors, therefore, have no hope of beating the markets, so they are better off sticking their cash in either index trackers or exchange traded funds (ETFs). Acceptance of this theory has played no small part in an explosion in the popularity of passive investing over the past decade.

What you need to look at before investing in a tracker fund or ETF

The growth of the exchange traded fund market is relentless. There are already close to 2,300 products on sale to UK investors, which provide all sorts of market exposures. And the number of ETFs on offer is set to increase, as both long-established players and asset managers looking to enter the ETF space fight for a slice of the pie.

Few can dispute the benefits – chief among them low cost – that ETFs bring to investors. However, product proliferation is making the task of ETF selection rather daunting.