Thursday, 19 May 2011 - 20:00
Sharenet is pleased to announce the launch of our new publication, The Sharenet Daily. We have built on the success of our Daily Equity Report, while adding more content and helpful information. The result is a publication that gives readers a quick, easy to read and informative synopsis of market activity, company results and news on the JSE for the day, as well as an overview of what transpired on important overseas markets.
The Sharenet Daily includes helpful charts that give a graphical impression of events, and our news content is sourced from a number of contributors, including Reuters. In addition, Sharenet's popular price information is available in our Spot Price format which provides a snapshot of the JSE and world indices, currencies and commodities.
All the JSE trading statistics; major movers; latest dividends; upcoming AGM dates and more are provided to insure that you keep abreast of market developments. The Sharenet Daily is published at 8pm each day on the website and also distributed via email for your convenience. As always, we welcome your comments, feedback and suggestions at email@example.com
Investing in ETFs
There is a fair amount of literature out there that recommends that investors should rather invest into ETFs (Exchange Traded Funds) than actively managed funds. The theory is that active equity managers in general fail to beat their benchmarks and that ETFs, as the low cost option, will therefore outperform. While we agree with this theory, we disagree that investors should blindly allocate their investments to ETFs.
While the cost of ETFs in most developed markets is extremely low, the costs of ETF unit trusts in South Africa, in general, are comparable with many of the actively managed equity unit trusts. Investors investing through listed ETFs need to incur buy and sell spreads on purchasing and selling the ETFs (while most unit trusts don’t have initial or exit fees anymore) and also monthly fees for their stockbroker accounts. It only becomes feasible to use the listed option when you have a fairly sizable asset base. Purely from a cost basis we can see in the chart below that even over a fairly short period (just over 5 years) the ETF unit trust underperforms the index by 10%.
Our second issue with advising uneducated investors to allocate their investments to ETFs is the fact that there are many ETFs that investors need to choose between. It isn’t merely a passive decision anymore, but rather an active choice as to which index the investor wants to get exposure to. Below we have shown the difference between two indices and their respective ETFs over the past 5 years or so. Evidently the investor choosing the Indi Fund would be significantly happier than the Fini Fund investor.
We do feel that there is a place for ETFs in the investment landscape but, just like any investment product, the investor needs to ensure that they (or a trusted advisor) understand what they are invested into.
At Seed we do make selective use of ETFs in our investment portfolios. Key for us is to understand what the ETF is tracking, what the return drivers are, what role the ETF plays in the investment portfolio, and what the alternatives (if any) are.
If you have an opinion about the usage of ETFs in investment portfolios, click through to Seed’s Facebook Fan Page and have your say under this posted note.
021 9144 966
Thu, 19 May 2011
AngloPlat announced the appointment of Albertinah Kekana as an independent non-executive director, effective 1st July 2011. Her appointment brings the total number of independent non-executive directors on the AngloPlat board to. . .
Since the last company announcement dated 29 March 2011, the company together with other industry stakeholders have held four meetings with the South African Department of Water Affairs ("DWA"). The purpose. . .
Shareholders were advised that PSV is currently finalising its results for the year ended 28 February 2011 and anticipates that the group will reflect a basic loss per share of between. . .
World Markets (Spot Prices)
|JSE Top 40||17:00||28663.76||62.08||0.22%|
|JSE Indust 25||17:00||27666.91||80.86||0.29%|
|Rand / Dollar||19:59||6.8739||-0.0239||-0.35%|
|Rand / Pound||19:55||11.1004||-0.0267||-0.24%|
|Rand / Euro||19:55||9.8369||0.0020||0.02%|
|Rand / NZD||19:59||5.4309||-0.0167||-0.31%|
|Rand / AUD||19:55||7.3205||-0.0205||-0.28%|
|Yen / Dollar||19:56||81.6900||0.0200||0.02%|
|Euro / Dollar||19:57||0.6987||-0.0031||-0.44%|
|Dollar / Euro||19:57||1.4316||0.0067||0.47%|
|Pound / Dollar||19:55||0.6171||-0.0011||-0.18%|
Click here for the Sharenet Spot Price page
The JSE Today
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||30,808.87||116.92||0.38%|
|Oil & Gas ||27,084.80||291.93||1.09%|
|Oil & Gas Producers ||14,563.00||156.97||1.09%|
|Basic Materials ||30,223.82||-19.39||-0.06%|
|Forestry & Paper ||14,776.07||44.99||0.31%|
|Industrial Metals ||28,373.79||369.36||1.32%|
|General Industrials ||75,775.74||353.63||0.47%|
|Consumer Goods ||27,600.20||-145.48||-0.52%|
|Automobiles & Parts ||3,181.56||22.64||0.72%|
|Health Care ||32,422.91||95.83||0.30%|
|Food Producers ||47,040.28||63.80||0.14%|
|Index Name||RP||Move||% Move|
|Personal Goods ||430.67||-10.28||-2.33%|
|Consumer Services ||53,642.61||319.25||0.60%|
|General Retailers ||41,107.02||174.65||0.43%|
|Travel & Leisure ||3,670.59||-16.86||-0.46%|
|Support Services ||2,399.96||11.59||0.49%|
|Non-life Insurance ||30,917.59||-133.37||-0.43%|
|Life Insurance ||15,913.23||94.23||0.60%|
|General Financial ||2,274.02||33.53||1.50%|
|SHARIAH TOP40 ||3,165.57||8||0.26%|
|FTSE/JSE SHARIAH ALL||3,226.26||8||0.26%|
|FTSE JSE Fledgling ||4,542.77||2||0.03%|
|FTSE/JSE Alt X ||1,024.20||10||0.98%|
|SA LISTED PROPERTY ||370.97||-0.09%|
|CAPPED PROPERTY ||311.31||-0.08%|
|FTSE/JSE RAFI 40||6,666.47||23||0.35%|
|Capped Top 40||14,953.06||45||0.30%|
|Capped All Share||16,072.78||44||0.28%|
Click here for the Sharenet Index Summary page
Latest Consensus Changes**
|NED||NEDBANK GROUP LTD||SELL||17 May|
|SBK||STANDARD BANK GROUP LIMIT...||SELL||17 May|
|AIP||ADCOCK INGRAM HLGS LD||HOLD||17 May|
|LHC||LIFE HEALTHCARE GRP HLDG ...||HOLD||17 May|
|EQS||EQSTRA HOLDINGS LTD||HOLD||17 May||
|Expected||Company Name||Fin. Date|
|20 May 2011||ACTOWERS||February 2011 (Final)|
|20 May 2011||MIRANDA||February 2011 (Interim)|
|20 May 2011||SABMILLER||March 2011 (Final)|
|20 May 2011||SABMILLER DEF||March 2011 (Final)|
|20 May 2011||SABMILLERP||March 2011 (Final)|
|BRT||Brimstone Investment Corporation Ltd||19/05/2011||Confirmed|
|AFX||African Oxygen Ltd||19/05/2011||Confirmed|
|BRN||Brimstone Investment Corporation Ltd||19/05/2011||Confirmed||
Stock Exchange News Service
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