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Index funds

This Month

Shoppers outside a Lululemon store at Brickell City Centre in Miami, Florida.

Index investing isn’t as passive – or profitable – as you think

How many people give thought to what is in the index, who decides what’s in the index, and how are those decisions made?

  • Bhanu Singh

October

Gerard O’Reilly, who has a PhD in aeronautics, runs investment giant Dimensional Fund Advisors.

The inconspicuous investor in bed with Australia’s biggest super funds

Global asset managers swarm to Australia’s super system like bees to a honeypot. Few pick up mandates as big as Dimensional.

  • Anthony Macdonald

July

Australia’s exchange-traded funds industry topped $200 billion in June.

Aussie ETFs top $200b as investors flood back to stocks

Strong performance from funds exposed to global equities are drawing investors and fund managers to the fast-growing local ETF market.

  • Joshua Peach

June

Alex Vynokur is the chief executive of Betashares. Its major investors include TA Associates and, now, Singapore’s Temasek.

Singapore’s Temasek snaps up $300m stake in ETF provider Betashares

The privately owned, Sydney-headquartered firm is one of the largest local providers of exchange-traded fund products with $38 billion under management.

  • Kylar Loussikian
Qoria, Gentrack Group and Bravura Solutions will enter the S&P/ASX All Technology Index later this month.

Three ASX tech darlings that just broke into the big leagues

The little-known small cap tech stocks are set to join ranks of better-known peers after all rallying more than 100 per cent in the past 12 months.

  • Joshua Peach
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February

Regal CEO Brendan O’Connor.

Regal assets climb as hedge funds take on ETFs

Retail investor interest in Australian hedge funds has dwindled to 10-year lows, as measured by assets, but Regal and Tribeca are seeing the opposite

  • Joanne Tran

January

Sharemarket strategists doubt rally as ASX 200 tests record.

Surging ASX creating overvaluation risks, some strategists worry

ASX records are expected to tumble, but the highest sharemarket will come at the expense of increased volatility, according to fund managers and strategists.

  • Joanne Tran and Joshua Peach

December 2023

Musk blasts public markets in talk with Wood

Elon Musk bemoaned the high regulatory burden faced by publicly traded companies in a wide-ranging talk with Cathie Wood.

  • Emily Graffeo and Kurt Wagner

November 2023

Passive funds are popular for a reason.

Active funds do beat passive strategies – but only in a few places

Cheap stock in placements, missing blow-ups and trading around index inclusions all help active fund managers. But it only really works outside of the big stocks.

  • Anthony Macdonald

September 2023

The ‘Aldi’ ETF that delivers an extra 0.21pc

Fees charged by funds based on the same index can make a difference to returns, which is why it’s worth taking a closer look.

  • Tim Mackay

July 2023

ASIC’s power duo: Sarah Court and Joe Longo.

ASIC sues ex-commissioner’s new employer

In an industry full of well-compensated chancers and spruikers, vanilla Vanguard is being sued regarding an ETF that charges a mere 0.24 per cent fee.

  • Myriam Robin
The big tech stocks now make up a huge 61 per cent of the value of the Nasdaq 100.

Big tech is becoming dangerously successful for passive investors

Index providers are cutting back on Apple and other large tech companies, which are concentrating risk in a small number of stocks.

June 2023

Emma Quinn the new CEO of alternative stock exchange Cboe Australia.

Cboe’s high-tech strategy to break ASX monopoly

CEO Emma Quinn has overseen a massive technology overhaul of the alternative stock exchange and is looking at future opportunities.

  • Tom Richardson

This way of buying Aussie stocks is more likely to bring you winners

Sick of getting exposure to the biggest companies on the index and missing out on big gains from smaller players? This is how to avoid that over-exposure.

  • Ben Smythe

April 2022

A well-diversified core portfolio, aligned to your risk appetite will help spread your risk and afford you a margin of safety over the long term.

How the ‘core-satellite’ approach can help handle market volatility

A well-diversified core and satellite portfolio, aligned to your risk appetite, can help you diversify.

  • Duncan Burns
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March 2022

Vanguard founder Jack Bogle.

Vanguard insiders are worried it’s losing Jack Bogle’s way

As the $10 trillion mutual-fund giant pivots to exclusive financial advice, diehard fans of the company’s founder fear the very soul of the company is at stake.

  • Annie Massa

February 2022

The ASX’s destiny is in the hands of just a handful of companies.

BHP is increasingly deciding the ASX’s fortunes

Australian investors in index funds and benchmark-hugging active funds have been left vulnerable to huge concentration risk in the ASX 200.

  • William McInnes

January 2022

BlackRock’s Larry Fink backs oil and gas

The world’s largest funds manager wants to help oil and gas companies make the transition to a net zero emissions economy.

  • Tony Boyd

December 2021

Relative to the last 10 years, investors have turned “more defensive” (i.e. healthcare, cash) but are also still overweight inflation assets (i.e. commodities, banks) relative to history.

Cash is back as global fund managers await Federal Reserve

Global funds managers have boosted their cash positions to their highest since May 2020, and still mostly see inflation as transitory.

  • Timothy Moore

November 2021

With the IPO of Rivian this month, pure electric motor vehicles companies make up 40 per cent of the auto sectors market cap while only delivering 2 per cent of all vehicles.

Ways to build on ETF foundation

An open-minded approach and appreciation of what is really represented in an index should underpin the decisions behind a thoughtful share strategy.

  • Giselle Roux

Original URL: https://www.afr.com/topic/index-funds-hom