Weekly Highlights 15 Dec: Passive investing to push US ETF asset over $50 trillion by 2030?

#1 BOA predict ETF asset to surge to $50t by 2030 The current size of the US ETF assets stands at $4.3 trillion, of which more than $3 trillion are invested in index-tracking ETF, i.e. passive investing. If the market continues to grow at its current rate, the US ETF asset is expected to hit …

Weekly Highlights 1 Dec: Is holding cash the optimal strategy now?

#1 Buffett sitting on $128 billion in cash  Well, when the Oracle of Omaha always pays fair value for his acquisitions. And the recent rally in the stock market seems to suggest that investors are willing to pay a premium to be in the market. Is the market getting too hot for Buffett? https://www.cnbc.com/2019/11/29/buffett-sitting-on-128-billion-raises-questions-on-market-valuation.html   …

‘Heartbeat Trades’ & ETFs: The elusive world of tax optimisation

There are many benefits when it comes to investing in an ETF, such as transparency, intra-day liquidity, tax efficiency and etc. Tax efficiency is a big one and not many people may know the inner workings of an ETF to understand why an ETF is more tax-efficient than a mutual fund. This article is set …

Direct indexing: The next chapter for ETFs?

ETFs have come a long way since the launch of State Street S&P 500 Trust ETF (SPY) in 1993. ETF is here to stay and in my opinion, it is just a matter of time before the mutual fund structure becomes completely obsolete. I am not saying that mutual funds will be completely eradicated from …

The creation and redemption mechanism of ETFs!

As retail investors, we can take things for granted at times. While ETFs have democratised investing for the main street investors, investing/trading in ETFs would not be possible if not for the market participants greasing the wheels behind the scenes. More specifically, I am referring to the creation and redemption process of ETFs' shares. In …