Hi Gang, I just stumbled upon a great presentation put on by the ASX that explains the myths about ETF lack of liquidity and other information about them. Go to: Listed Managed Investments - LMIs, fund manager, diversify investments - ASX and select "Getting Started: Building your portfolio using Etfs". The "Questions to the Panel" is excellent and the most informative. I'm actually becoming quite a fan of these products now. Purchased some STW in the SMSF the other day. Again a long term holding so I'm not concerned about market volatility in the short to medium term. Cheers - Gordon
Building your portfolio using ETFs - Domestic and international investing made easy ... questions to the panel: [audio]http://www.asx.com.au/resources/podcast/library/lmi/asx_etf_roadshow_190208_questions.mp3[/audio]
Interesting listening. Are all ETF's priced in US dollars? ie is there any currency risk associated with purchasing STW? Also, what's the easiest way of adding STW to a margined portfolio? Could I ask the margin lender to purchase for me, or would I have to purchase myself through commsec and then transfer them over? Thanks
Some more detailed information on currency and liquidity can be found at: iShares ETFs for Australian Investors Go to Resources; Reports & documents. STW is the S&P ASX200 index so the stocks are Australian stocks. Hence it is in $Aus. Check out SSgA: SPDRS Australia Exchange Traded Funds, ETFs for more information. Cheers - Gordon
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