Wednesday, 7 October 2015

Jodi buys RWO 45.86: Not only are the indexers powerful, but that power is concentrated in a few hands.

Not buying A-shares would have been too great a career risk. They know that big pension fund managers and their consultants will decide whether to allocate them money based on their performance compared with the MSCI benchmark. But active managers, who merely use the MSCI index as a benchmark, would also have been obliged to buy A-shares. ETFs were introduced only 25 years ago but now manage more than $3tn globally. Then imagine what happens if everyone is trying to be a little faster than everyone else.


Isabel:
It also offers a dramatic demonstration of the rising influence of the index.

Kasandra:
The FTSE EPRA/NAREIT indexes are seen as the standard industry benchmarks and act as a clear proxy for the direct real estate market.

Jesica:
In contrast to direct property investing, which can involve significant capital outlays, hefty acquisition costs and long tie-up periods, the ETF offers investors a liquid, diversified and low-cost means of accessing property.

Letitia:
I would prefer using more individual ETFs to gain my exposure because I'm willing to do the work of choosing more ETFs to save on the expense ratio every year.

Catherin:
However, using this option requires paying a more substantial expense ratio which should hurt returns over the long term.

Charlette:
Doing so would allow them to get a much lower expense ratio on the portfolio.

Carolyne:
I'm not big on the expense ratio, the volatility, or the correlation so clearly I wouldn't be a fan of paying a premium to NAV to enter a position.

Analisa:
Those don't offer the international exposure, but the difference is pretty massive.

Johnnie:
There are solid domestic options with expense ratios around .10% or lower.

Kim:
As you might guess, that leaves me feeling less than impressed.

SPDR DJ Global Real Estate (AMEX:RWO)
//stockhand.net/us/?q=amex%3Arwo&id=254662

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